Auto Insurance Quotes Lowered Due to Weak Economy

March 4th, 2010

Are you looking to cut back on expenses due to the economy? The current recession has caused auto insurance quotes to be lowered and many Americans are taking advantage of this by comparing insurance quotes online. Consumers are getting quotes on average about $112 lower than last summer for exactly the same coverage. This decline in average auto insurance quotes comes as good news for consumers whose policies were adversely affected by rising car insurance prices in 2008. Lowering your insurance premium is very possible right now and here are five tips when searching for cheaper coverage online.

Get the Right Car

If you’re in the market for a new car, it is very important that you keep in mind that some vehicles cost more to insure. For example, cars with higher repair costs will cost more to insure than others. So, give your insurance agent a call to see if there is a notable difference in rates when comparing cars.

Clean Up Your Credit Report

This may seem like a frustrating task, but the reality is that your credit report can affect your car insurance rates. In fact, some companies won’t insure those who are extremely poor in their payment habits. Someone with a clean credit report can pay up to 30% to 40% less than those who have problems with their credit.

Get All Available Discounts

Discounts vary among the different insurance providers, but the average driver does not take advantage of the available discounts. For example, taking a defensive driving class can lower your rates by 10% on average. If you are a student than there are good-student discounts. Students with GPA’s of 3.0 and higher are eligible for discounts of as much as 25% off. Retirement discounts, safety discounts, loyalty discounts; there’s a long list of available reductions and you need to take advantage of them.

Ask for Higher Deductibles

Higher deductibles mean lower premiums. The deductible is the amount of money you pay before your insurance company kicks in. There can be significant savings when you factor in the likelihood of actually filing a claim.

Shop Around

This is the most obvious component in lowering your auto insurance, but it’s also the most crucial. The importance of looking at the details and fine points of a particular provider cannot be stressed enough. You’ve heard it before: When looking for a new policy, get at least three quotes. And if you really want to save, gather several more than that. Lastly, your existing insurance company might not be the best one for you in the future. You should research your auto insurance coverage options 30-45 days before your current policy is set to renew. Contact several different auto insurance companies and evaluate their prices. You can do this over the phone or use the Internet. Look in your phone book and find around 5 insurance agencies. Contact them about insurance rates. Compare the prices among the various companies to find the cheapest one that adequately meets your car insurance needs.

You can find quality insurance for an affordable price at Don’t sacrifice good coverage for better rates. Go to to get free insurance quotes that offer the best coverage for the lowest rates.

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