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Modifying your car? You better understand your insurance policy.

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Saving money on car insurance is easier if you are knowledgeable about how the insurance industry works. Spending a few minutes learning the basics about insurance can result in considerable savings.
The first thing to do is shop around for car insurance. Even though the type of car insured, the operator’s driving history and other factors can affect insurance rates, different companies still offer different prices for the same coverage. Research pricing online but then call the companies to see if there are special discounts not being offered online. Talk to an agent about which features are necessary. Have them customize a policy based on your specific needs. Each time the policy renews, review it to be sure each part of the policy is still relevant.
A simple step to saving on auto insurance quotes is not to take out a short-term payment plan on the insurance policy. Each installment payment has a service charge on it, and this adds up over the life of the policy. Pay the entire amount up front, and don’t be tempted to pay monthly. This may be difficult at first but typical savings can be in the range of one hundred dollars per year. Instead of making monthly payments, put the money away in an envelope or savings account and use this to pay the entire amount when due.
Another way to save is to maintain a good credit score. Insurance companies are increasingly using credit scores to price insurance policies. A low credit score indicates a person who is a bigger risk and insurance is all about risk analysis. Pay bills on time, don’t overuse credit cards and keep balances below 25 percent of the available credit on the card. An excellent credit score can have many financial benefits, not just lower insurance premiums.
Dropping collision or comprehensive coverage on older cars saves money. The rule of thumb to follow is if the car is worth less than ten times the insurance premium, it is not to the owner’s advantage to keep full coverage on the auto. Use a reliable guide to determine the current value of the car, and compare this to the cost of full insurance.
Make sure all autos and homeowner or renter’s insurance is with the same company. Many companies offer discounts for multiple cars or for carrying both homeowners and auto insurance. It can definitely be worth the time to review your policy with your insurance agent.