We all want cheaper auto insurance so we can lower our household budget, but most people don’t know how to lower their rates. Many people just call up their local agent and hope they are getting the lowest rate. However, there’s a better way to shop for auto insurance. With Amigo Insurance, you can review multiple quotes from direct providers and often save hundreds. The quote is free; you can use your smartphone to check out your custom rate.

If you do your homework and some basic research, getting your automobile covered at great low rates is actually fairly simple.  Here are some common-sense tips that will help you get better coverage and save you some big bucks. If you are ready to compare rates now, just enter your zip code to get started. 

1- Don’t sacrifice good Coverage just for Lower Rates

So many people make the mistake of just narrowly looking at which companies have the cheapest quotes.  While price is a very important component, especially for those on a super tight budget, you should first build the type of policy that protects you properly.

After all, insurance is designed to cover you in times of trouble.  If you’re like a lot of people, “Murphy’s Law” seems to follow you wherever you go, and accidents can happen at any time.  Build a policy plan first and foremost around the coverage you need first, and then you can shop for the lowest-priced carriers later, already knowing what type of coverage and limits you need.

2- Go for a higher Deductible and Bank the Savings  

Most people don’t realize that insurance carriers make most of their profits from the capital gains earned by investing in their policyholder’s premiums.  It’s no secret Warren Buffet is one of the richest men on the planet. Through Berkshire Hathaway, Buffet controls the second-largest automobile insurer in the world – GEICO.  Mr. Buffet carefully puts the premiums consumers pay into investments.  During good economic times, insurers may make 8% or more annually off of insurance consumers’ premiums. 

Get smart and raise your vehicle deductibles to $1,000 or higher.  Take the savings and invest the money wisely yourself.  Think about it for a minute. Would you rather get 8% or more on your money or give it away to large insurance corporations and make them even richer?  This is one of the best tips to reduce your premium cost by around 10% or more.  Always set aside the deductible amount in case you get into an accident and file a claim.   

3- Buy the Right Type of Car and Save Big

Getting cheaper car insurance means driving a vehicle that’s boring and often used. To really get the cheapest possible rates, you need to drive a car that insurers love. 

Most rating sites like Consumers Reports and others give lists of cars that are the cheapest to insure.  Cars like the Subaru Forester are on nearly every list. For all the soccer moms out there, check out the Honda Odyssey van.  This quality vehicle has amazing safety features, is fun to drive, gets good gas mileage, and is surprisingly cheap to insure.

As you might suspect, stay away from expensive sports cars like a V8 Mustang or a new Jaguar if you want to lower your insurance costs.  If you do get an expensive luxury or sports car, keep the mileage down so you can get rate discounts. 

4- Get all the Discounts you can

Are you a great student, teacher, or military vet?  If you are, then you can qualify for some really good discounts.  Some auto insurers like USAA auto insurance not only have discounted rates for active military service members but extend these special rates to family and relatives.

Other companies like Horace Mann have leveraged their purchasing power to get teachers great deals on auto insurance coverage. Sometimes not all currently available discounts are listed online, so call a company representative before you buy a policy and see if there are any hidden specials you can take advantage of.

If you are not sure what discounts you qualify for, now worried. Call an Amigo Insurance Agent today and learn more about all the discounts offered and see which ones you can take advantage of.  

5- Combine your Auto and Home Policies

If you have a home, renters, or multiple automobile policies, you can qualify for bundled rates with many insurers.  Most of the time, you can save 10% or more and consolidate your bills into one easy payment.  This is a great way to cover most of your insurance needs with one insurer.  Compare bundled quotes from top providers today. Just enter your zip code now and select a bundled auto and home quote.  

Combine your Auto and Home Policies

 6- Maintain a Good Driving Record

There are some things you should never do behind the wheel once and one of those is drinking alcohol and driving. There are so many sad stories out there of people who had a great driving history, then one night drove while intoxicated and had their policy canceled, or their premiums raised 200% or more.

Keep in mind carriers regularly check driver records through the DMV database, and the more points and violations you have, the higher your premiums will go.  Stay safe and get cheaper insurance by following all the traffic laws.  If you do get a ticket, get it cleared up by going to traffic school. Remember, the lower risk you pose to an insurance company, the cheaper your rates will be.

7- Comparison Shop Online for the Best Deals

Before you drive down to your local insurance broker or pick up the phone and call an agent, start shopping online with Amigo Insurance Company. The low cost of doing business direct and online has allowed carriers to offer special prices that could save you lots of money.  Make sure you compare rates with A-rated companies and review at least ten quotes before buying.

Shop for the cheapest rates today with Amigo Auto Insurance and lower your premiums. Get started on your free, no-obligation quote and see how easy it is to shop and save online.