Looking for affordable car insurance is time consuming.
It is even more of a challenge to keep your premium low and to not break your budget.
Insurers are in the business of charging as much for their product as the law will allow.
It is up to the individual consumer to keep the cost of the premium low and the auto insurance company in check.
The only way to do this with knowledge, research and homework about what you want and need in the way of vehicle coverage.
A few things that you can do to decrease your monthly premiums include, paying your entire insurance premium in one lump sum at the beginning of the year, rather than spreading it out monthly, or quarterly.
Most companies charge you service fees just for spreading out the payment.
If you can, don't let others drive your auto.
This is because, as the auto, truck or van owner, you are still totally responsible for damages in case of an accident.
Allowing another driver behind the wheel of your vehicle will almost double your rates even without an accident or moving violation on your record.
Still another way to save occurs when you've decide to switch carriers.
Be sure to officially notify your company in writing, then follow up with a phone call to find out exactly when the policy ends.
This will keep the old policy and new policy from overlapping, either in payments or as a dead zone between payments.
No one wants to have a dead zone happen at the same time you get into a fender bender.
National studies show that premiums go up nearly 40% after the first accident.
So some experts recommend that it is better to pay for fender bender expenses out of pocket, rather than turn the matter over to the insurance company.
And, if you walk away from an accident but your vehicle ends up totaled, check your state laws before settling, since the law in most states says that the insurer must pay all sales tax on a replacement auto.
Otherwise, you may end up paying several hundred dollars in unexpected taxes.