Car insurance is an expensive business but one that cannot be ignored if you are a car owner.
To drive without your vehicle being insured is a crime in almost all states and provinces in North America where the guilty party faces serious penalties and may also lose his or her driving privileges.
Nevertheless, it is possible for one to reduce the cost of car insurance by carefully selecting only options that are necessary.
If you happen to drive an older inexpensive car or a car with high mileage, then you may not want to go for the full coverage.
Full coverage covers the cost of damage to the other party along with any damage to your car.
Other protections under full coverage include theft and vandalism.
You could lower your insurance rate if you choose liability only policy.
It is always a good idea to select the highest liability coverage.
Although this will cost a bit more, it is absolutely essential.
Liability is one area where you do not want to cut coverage.
Just imagine if you happen to be in an accident where the other party claims bodily injury which could cost hundreds of thousands in medical bills plus unpaid time off from work.
Another smart way to reduce the rate is to bundle your home, life and car insurance together with the same company.
In many cases the provider can give you a discount when they manage multiple insurance policies for you.
This is because most companies would offer you discount in order to sweeten the deal to acquire more business from you.
Maintaining good driving record is another way to get better rates.
Many insurance companies have various programs such as 'safe driver' discounts program which can save you money if you have maintained a clean driving record.
Therefore, the next time you are about to speed, think about the definite price hike on your auto insurance rate, and that may keep your feet from pressing too hard against the gas pedal.
If you are only using your car for casual driving and are not driving long distances every day, you need to communicate this information to your provider or agent.
Rates vary based on how much you drive.
The reason for this is that there is more chance of accidents if you happen to be on the road more often than not.
Your car's safety features can also save you money when applying for insurance.
Many providers will lower the rate if your car has safety features such as automatic air bags, anti lock brakes and automatic seat belts.
Anti theft devices and alarm systems are also the favorites of insurance companies as they help to keep your car less accident prone as well as they reduce the chance of theft and vandalism.
Again make sure that you discuss these features when applying for your car insurance.
Last but not the least; make sure that you get quotes from various different companies as the rate varies largely from one provider to another.
Once you have compared all rates and policies, then you can choose the best insurance rate and the best policy that is right for you.