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=>Familiarize yourself with the glossary of insurance terms. This will help you in choosing
the right coverage needed for you.

=>Compare the quotes from different insurance companies. You might save a few hundred dollars
just doing this.

=>You can take advantage of the discounts available like fresh graduate discount and auto-club
member discount. Some insurance companies offer a discount if you combine your renter's

insurance with your auto insurance.

=>You can decrease your insurance premium considerably by increasing your deductible.

=>You can save by combining the policies of different members of your family under a single
policy.

=>Things that weigh a lot in your insurance premium:
-the number of years you have driven. An experienced driver will get a better insurance rate
than a person who got his license yesterday.
-the driving record. The cleaner your driving record, the cheaper your insurance rate.
Different insurance companies determine driving risk differently based on your driving
record. Few insurance companies even might forgive your first incident.
-the number of miles you drive per year. The more you drive, more is your premium.
-primary usage of your vehicle.If you use the vehicle for pleasure instead of commuting, the
insurance premium will be lesser.
-type of the vehicle. If you have a Sporty or a luxury vehicle, the premium will be higher.
-Anti-theft system. If you have an anti-theft system installed in your car, it decreases the
risk of your car being stolen, thereby by decreasing your insurance rate. So if you already
don't have any anti-theft system, it is better to get one installed.
-Anti-lock braking system and Electronic Traction Control. It reduces the risks of an
accident and hence better is your insurance rate.

=>Few insurance companies give you a better rate if you use your vehicle for carpooling.

=>Insurance companies mostly try to give a better rate than you already have. Check your
quotes with different companies once in every two years at least.

Though getting the right insurance coverage for the right price might seem a tricky business, the above steps would help you lot.

Learn more about this author, Vivek Durairaj.
Click here to send this author comments or questions.

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