Drivers who are looking for low auto insurance rates can avoid paying more than they have to need to start with a plan. Since car insurance companies set their rates based on the level of risk that they present, an applicant needs to be able to demonstrate that he or she poses a relatively low risk for coverage purposes.
One way that a customer can show the insurance company that he or she is a low risk is to maintain a clean driving record. People who can remain accident and moving violation-free over several years are considered relatively low risk driver for car insurance purposes.
Increasing the level of the policy deductible is another good strategy for keeping car insurance costs down. A driver who agrees to pay more toward the cost of settling a claim personally will be able to qualify for lower premium rates. Before increasing the deductible to $500 or $1,000, a driver needs to consider his or her financial situation carefully. The deductible must be paid out of pocket before the insurance company will write a check to settle a claim, and the consumer needs to make sure that paying this amount will not result in financial hardship before buying a policy with this provision.
Shopping around is a great strategy for people who want to qualify for low auto insurance rates. Prices vary between providers. Getting quotes from several providers before making a decision about where to buy a policy will help a driver find the best pricing.