If you are working to a tight budget, understanding how to avoid auto insurance surcharges can be vital in keeping a control over household finances. There are a number of ways that consumers can use the operational methods applied by insurance companies to avoid additional charges that might not always be obvious at first glance.
Expressing loyalty to a particular insurer is one of the best ways of avoiding penalties that might be associated with switching a policy from one carrier to another. Continued custom with a single company can see premiums lowered significantly upon renewal if a motorist manages to maintain an accident-free driving record. In some instances, it can be worthwhile comparing prices with other companies to see if a better deal can be obtained elsewhere. If a lower premium can be found, it is usually better to ask your existing carrier if they can match or beat the offer of a competitor.
Motorists involved in minor accidents should avoid making claims on their policy wherever possible. It is usually more cost-effective to pay for small dents or other associated repairs personally. If multiple claims for minor repairs are continually being made, premiums are likely to rocket when the time comes for a policy renewal.
When an insurance policy is applied for, most carriers will try to sell a range of other features such as breakdown recovery, anti-theft insurance or collision damage coverage. It can be more prudent to decline these offers as a premium can rise significantly if additional features are added to a policy. This is particularly true for motorists who own a vehicle with a low market value.