California Vehicle Insurance -- Tips That Will Enable You Save Much

A cheap rate can be achieved in many ways. But while some of them might reduce your cost, they could leave you with inadequate coverage. I don't usually support such ways since they make nonsense of the main purpose of insurance in the first place. Therefore, I will only show you options that will also leave you well covered despite saving you much...

1. You are certainly paying too much if you have collision and comprehensive coverage types for an old vehicle that is not a classic. A car's Kelly Blue Book value at the time of filing claims (and not the value of the vehicle when you bought it) is what determines what you will get paid by your California insurer. So even if you've paid your premiums diligently for several years but the Kelly Blue Book value shows your vehicle has zero value, you will get a dime from the insurance provider and they'll be completely covered by the law.

Do the wise thing and leave out both from your auto insurance policy. If you apply this tip you'll pay a lot less.

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2. You are eligible for a sizeable discount if your child doesn't drive the vehicle for a considerable time frame because he/she is away at school. If your child is is away at school then you should talk to your auto insurance agent about your eligibility for this discount. I must stress, however, that some insurers don't offer this discount.

3. You might reduce your rate if you reappraise your California car insurance policy at least once a year. Change is unavoidable and goes on without our permission but then we mustn't still bear the cost for matters that these changes have relieved us of. How many policyholders, for example, remember to drop their daughters from their policies immediately they get married?

Do you know that you might now be eligible for certain discounts because of a number of changes in your profile? It might as well no longer be good advice to retain some coverage types.

Go through your vehicle insurance policy not less than once a year. Don't be surprised if you find out that you need to make adjustments or if you see changes that will bring about big savings.

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4. You'll be given lower premiums if you pay by Electronic Funds Transfer (EFT). This authorizes an insurance company to automatically withdraw your premiums from your account when due. This saves your insurer in many ways such as eliminating the cost of mailing payment notices and the cost of processing checks. Your rate is therefore brought down in line with the cheaper cost of providing insurance to you.

5. Insurers give give customers who have remained loyal a long term discount and accident forgiveness. Some insurers will give you up to 5% in discounts once you've been with them for up to three years while others will give you such a discount only when you've stayed for up to five.

Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones. The longer you stay, the more you'll save.

But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.

If your auto insurance rate is $2,500 and you are given a 5% discount when you maintain a policy with them for up to 5 years you will pay $2,500 - (5% of $2,500 or $125) = $2,375.

But also bear in mind that your rates may be altered to reflect the effect of inflation. But if you are someone who does regular shopping for auto insurance you will very likely get an insurance carrier within those years of waiting who will give you a similar coverage for less. In such a case, it will be pointless to stay put because you want to get a loyalty discount down the line when you can pay less at the moment.

You'll most likely pay less if you take the time to do extensive shopping since there are hundreds of auto insurance companies available. You can only be sure if this is true in your case if you obtain and evaluate quotes from a good number of auto insurance companies and then see where your interest is better served..

6. Add-ons like towing raise your premium without giving you as much value as using a towing service. Have you checked to see if your credit card doesn't already offer this as added value?

Overall, you're better off using a third party towing service than placing it on your auto insurance policy.

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7. Doing business online is cheaper and more efficient. This also applies to buying and selling California auto insurance. Expect to save up to 15% (when compared to what you'll pay if you went to a physical office) if you get your quotes and buy your policy online.

This makes it obvious that you'll save a lot more if you buy online.

But do ensure you do NOT present false information. Insurers are mandated by law to cancel any policy once they can prove that the policy holder gave false details.

Don't also forget to confirm your preferred insurer's rating and standing with California's Department of Insurance an other financial rating institutions.
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