There are many terms that are specific to auto insurance, and they can be confusing. Sometimes, it can confuse the best of people. You will be able to understand these terms better after you read this article. Knowing the terms will make you a more informed consumer.

​

Do not switch cars between family members to keep your premiums low. You will get a better price that way.

​

The greatest advice when it comes to car insurance is to keep your driving record clean. An automobile accident quickly raises your insurance rates. If you are at risk of getting in an accident try to avoid the situation. Do not drink and drive and stay home if the weather is bad.

Installing security systems in your car, such as auto insurance quotes and trackers could help you lower your insurance premiums. The chance of theft can greatly increase your insurance policy. Lower insurance rates are available to owners with less frequently stolen models of cars.

​

You may be able to get a lower rate if you feel the rate you received based on your record was unfair. If you have a ticket or collision on your record, ask about options such as taking a driver education course in order to alleviate surcharges. You could also see if your insurance company has a similar program to Progressive's, which allows drivers to have a computer chip installed into their car. This chip monitors your daily driving habits and reports them back to the insurance company. If you practice good driving habits, the insurance company will then lower your rate.

 

You can be dropped from a new insurance policy in the first two months for just about any reason. This time is used to ensure you don't pose a high risk. If an insurance company does choose to stop covering you, it could affect your rates going forward.

​

You can lower your insurance rates by driving your car less. By reducing the amount of mileage you are traveling, your insurance company is going to be impressed by your responsible attitude. You could have a discount that lowers your premium if you let your agent know that you use a bus or carpool.

In case you have an accident in which you need to file an insurance claim, remember that insurance companies love documentation. Use your cell phone to take pictures and record video of the damage caused by the accident and the location where it occurred. It may even make sense to keep a camera in the vehicle so that you are prepared for any circumstance.

​

You may think a higher premium is inevitable if you buy a sports car, but this is not necessarily the case. Only a few models of sports car are subject to such high premiums. Contact your insurance provider to find out how much the premiums would be for the specific car you want to purchase.

 

To save cash when buying auto insurance for a teenage driver, be sure to determine if you will pay less if you get them a separate policy or if you should just add them to the policy that you have. It can sometimes be cheaper to purchase a different policy, but this depends on what vehicles are involved.

​

When you cancel your current insurance policy to switch to another company, you should do it in writing, and keep a copy of it. Cancelling by phone can mean that your request is not properly recorded, and you may continue to receive bills that you ignore. The company may then report you for nonpayment and terminate your policy, even though you thought you already had! If you are reported as terminated for non-payment, it will affect your credit score in a negative way.

​

Spend some time with your agent reviewing the specifics of your coverage before you add expensive personalization to your car. Investing in expensive rims that cost you $1000 bit only add $30 in value to your vehicle will add up to a big loss if the vehicle is stolen because you won't recover the difference.

 

Use this advice to make smarter auto insurance choices in the future. Educating yourself about your choices is the best way to conquer your confusion when it comes to auto insurance.