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How to Save on Auto Insurance

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In the United States there has been much debate about the legality of auto insurance. The Road Traffic Act 1988 in the United Kingdom, states that all drivers must have auto insurance. There is, however, no national law in the United States requiring auto insurance. It is left to the municipal state to establish laws regarding auto insurance.

Forty-seven states have passed legislation requiring auto insurance, while the remaining three have set stipulations for those without insurance coverage. In Virginia, you have to pay an annual fee of $500, if you do not carry auto insurance. In New Hampshire and Mississippi, drivers have to post cash bonds instead of insurance. That way if you cause an accident, the cash bond will cover the cost of damage and injury to the other driver.

Since auto insurance is mandatory in 47 states, and the remaining three states have financial requirements in lieu of insurance, drivers must be insured. There many different ways drivers could go about finding coverage. Drivers could visit with a local insurance agent, contact a major insurance company, or do online searches with individual insurance companies. There are also several online tools that allow you to compare auto insurance quotes. These searches help you compare and contrast different rates and plans from several different companies. It saves drivers time by organizing several different quotes from numerous different insurance providers. It gives motorists unbiased information for optimal decision making and money saving tips.

Here are some tips to save on auto insurance. Be selective with the cars you purchase. Cars with powerful engines, low test score ratings, and high theft ratings are typically more expensive to insure. Additionally, the cleaner your driving record, the less expensive your insurance will be. If you have a lot of points on your license, or don’t have the cleanest driving record, motorists could take a driving course to show insurance companies that they are taking preventive measures to better themselves and their driving habits. Taking a drivers course will also help reduce your rates. Even if your driving record is squeaky clean, drivers could enroll in a defensive drivers course. This shows insurance companies that you’ve been trained to be a better driver, which will in turn reduce your premiums.

Also keep in mind that there are several types of policies. If you don’t do a lot of driving, you may save money buy purchasing a usage- based car insurance policy. Someone who drives 40,000 miles a year has a much higher risk of an accident or damage versus someone who drives 13,000 miles a year.

Another strategy, to keep your premiums down, be sure to always pay your bills on time. You’ll avoid late penalties. If you’ve been a customer with one company long enough, you may even be rewarded with reduced premiums for a record of timely payments. Finally, be safe and smart while driving. Drive the speed limit and  follow the rules of the road. That is the best way to safe money and keep your auto insurance rates down!

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