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Getting cheap auto insurance though not easy but quite possible at least for a year if you do some good homework. However, to repeat the act over many years can be quite challenging. Many people encounter the problem of premium shooting up at the time of renewal of the car insurance policy, and there can be several reasons for it. Changing customer discount, filing a claim or earning a ticket for rash driving and adding a driver with the poor driving record could be some reasons for premium shooting up. However, sticking to the same company for auto insurance nearby year after year and depending on auto-renewals by looking at it as a convenience is the biggest cause for premium escalation.

By knowing the factors that the insurance companies use for fixing premium you can make a smart choice that lowers your premium.

Shop around

Best rates for car insurance are available from numerous car insurance companies, and it will be wrong to settle for something without comparing. Shopping around for car insurance is one of the best practices that help to keep premium within your budget. Never be complacent with whatever best you have got because if you discover even better rates later, you can switch over the insurance company anytime. Staying alert and agile about the car insurance market will aid the process of finding the best rate and even the best deal.

Keep mileage within limits

The more you drive and cover more distance, higher are the chances of wear and tear, accidents and damages and insurance companies deem it as a risk that they would like to cover by charging a higher premium. Optimal driving by cutting down on unwanted trips can reduce the mileage which in turn would lower the premium provided you negotiate well with the insurance company.

Improve vehicle security

Since insurance companies consider the perceived risks for the vehicle, you can lower the risks and ask for a lower premium by enhancing the safety and security features of your vehicle. By incorporating some advanced anti-theft device like wheel locking nuts, immobilizer, and alarms in the vehicle you can expect lower premium but check with the insurance company first if it would be acceptable to them. Compare the investment with the saving generated and only if saving is more than you can go ahead with it.

Stick to the annual premium payment

Paying premium annually will cost you less than paying it monthly even though for some people monthly payments would be a more convenient option. The difference between annual and monthly payments is so significant that unless you run out of alternatives, you must not agree for monthly payments. If cash payment is difficult to make in one go, then try to use some zero-interest credit card to avail the saving.

Always ensure safe driving and try to enjoy the no-claim bonus that insurance companies offer during renewals and you pay less premium for the new policy. If you have comprehensive and or collision insurance, then increasing the deductibles will bring down the premium.

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