Being Careful With Your Car Insurance

The automobile industry, like any other aspect of the economy, is being battered by declining sales as a result of the ongoing worldwide recession. With the big three American automakers on the brink of total collapse if no bailout is provided by the government and the biggest Japanese car maker declaring losses for the first time in so many decades, cars are being offered like department stores’ red flag items. But still there are no takers as consumers who are threatened by job lay-offs are reluctant to spend the little savings they have as car down payments or be tied up with a five-year loan when everything is so shaky.

But cars are as essential as a house in the American society. For people who are as mobile as the Americans, living without a car is almost next to impossible. To this end, people try to find means to economize on other aspects of life but never to give up their cars. As such, turning to the pre-owned car market is an alternative. With the price of cars declining tremendously as they go out of the dealers’ door, a pre-owned car offers a substantial savings without sacrificing on quality especially with the advent of dealer certified pre-owned inspection.

Another area where savings can be realized in the era of financial crunch is in car insurance. Getting car insurance is unavoidable when you own a car. You cannot register your car without the mandatory car insurance. It is the law. But there are ways of saving money on your car insurance payments.

Young drivers are normally charged a higher premium on their car insurance. It is because of the assumption that young drivers, being inexperienced, are more prone to accidents. Young drivers, however, can build a good driving record by being careful and avoiding any accident or traffic violations which will eventually result to future discounts in their insurance premium.

Traffic violation convictions will be part of your driving records and can jack up your insurance premiums. Whenever allowed, opt for attending traffic school as a punishment for your traffic violation as this will not reflect in your driving record.

Get vehicle security like lo-jack as insurance companies give hefty discounts when your vehicle has protection against thieves and carjackers. Insurance companies are well aware that their liability exposures are lesser on protected vehicles.

Insurance companies attract customers by offering low down payment and easy installment terms on their policies. A vehicle owner can save a bundle by paying their policy in full. A simple calculation will show you that payment on a six month or 12 month spread will cost a lot more than the quoted amount of your insurance premium.

Shop around for insurance policy premiums that are easy on the pocketbook. One way is checking for insurance companies by way of the internet or even by the yellow pages. Make a list of reputable insurance companies and ask for quotes.

With the tight financial strait people are in nowadays, a dollar saved on your car insurance will go a long, long way.

See: Gas credit card

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