How to Buy Cheap Auto Insurance

It is hard to believe that many people buy auto insurance without even searching for the best and cheapest one. It is understandable, because one time I tried to call some auto insurances around my hometown and found out that the premium is less than $50 in difference. Your insurance company always tries its best to make you think that it is one of the best and cheapest in the business. In fact, it is not true you can always save yourself some money if you follow the step below.

1. Prefer class

It is essential that you know which class of driver that you belong to. Most insurance companies prefer some kinds of drivers according to their driving record and risk. Insurance companies can not openly admit it because it is driver discrimination. Some insurance companies that give university graduates and professionals a preferred class and the premium is 20% to 50% less than other insurance companies.

2. Understand the role of agency and direct writing auto insurance companies

The agency sold you the auto insurance policy received 10% commission of the total premium. This commission is added to the premium for the service which your agency provides and most agencies in your town may carry the same auto insurance companies in their books. Direct writing companies have no agency and the policy is written through phone or at their offices. People in the direct companies receive salary with no commission. It doesn't mean agencies carrying insurance are always more expensive than direct writing company. If you try to compare them, you will know what I mean.

3. Do not cover your windshield and auto glass

Since there are always $250 to $500 deductible in your auto insurance policy, how much would a windshield replacement cost? Most of them are less than $300 and you don't want to claim $50 and have the claim written in your record. On the other hand, you can always negotiate for a better price if you pay cash. Any claim in your record will increase the risk of your policy being canceled if you are involved in an accident in the future.

4. Services

If you buy your auto insurance company through an agency, you can ask them if you have any questions but most people either don't know what to ask or their agents are too busy to give them time. If you are involved in an accident you most likely will report first to your agent and this only delays your claim, especially when you have a loss of use clause in your policy. You always report the accident to your insurance company for prompted service. If you buy your auto insurance from direct writing company, you will be given instructions for what to do as soon as the claim is reported and most of them are opened 8AM to 6PM Monday through Saturday.

5. Stay with your insurance company

After finding the cheapest auto insurance, you should stay with them as long as you can because most insurance companies will not only forgive one or two tickets within 3 years but also only lower one star from your policy if you are involved in an accident. Constantly changing auto insurance company will increase the risk of the policy from being canceled if you are involve in an accident.

6. Do not claim anything less than $1000

With the deductible of $500 or more, claiming anything less than $1000 will increase the risk of your policy from being canceled if you are involve in an accident and reduce the forgiveness period (instead of lowering one star, the insurance company may cancel your policy).

7. Ask for discounts

Always ask your auto insurance agent or company for discount if:

a) You are over 50 years old and up 
b) You have an alarm installed in your car 
and tell them about 
c) You have a good living lifestyle 
d) You have a good occupation
For more information for how to buy a cheapest auto insurance policy
http://bestautoinsuranceguide.blogspot.com/

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"Let Take Care Your Health, Your Health Will Take Care You" Kyle J. Norton
I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.

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