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One thing that anyone who’s looking to get very affordable auto insurance rates must do is get and compare quotes. And, one thing such a person will discover is that the disparity in rates returned is usually very much. It’s NOT uncommon to see quotes with a range of over $1000 between them.

But why is this so? Here’s a very simple explanation: Each insurer has to determine how much it costs them to give you coverage and how much profit is fair. They’ll also have to determine what price point will keep them competitive in a tough marketplace. However, they do NOT start working out each person’s rate from the scratch when they apply. They use a system that grade different factors according to relevant they are in helping them determine a person’s risk profile.

This is where the disparity begins. Different insurers will give different factors different relevancy weightings. So if you consider that there are as many as 45 of these factors, you’ll appreciate that there’s bound to be serious differences in rate quotes returned by each insurer.

You would have to take very active steps if you want to ensure you get to qualify for and maintain a very affordable auto insurance. Some of the things you’d have to do will require that you make big sacrifices. However, some other things that will help you make some savings won’t require that you do much. This article will show you one simple way that you can reduce your annual spend…

Stop paying monthly and start paying annually or twice a year at most. You actually pay a lot more when you pay your premium each and every month. This is especially true if you are the type that still has to pay his or her premium by check. There are administrative costs associated with your payment as there are also bank charges.

Paying once a year. Reduces those overheads and such savings reflect on you since you get to pay less. It is said that you’d save up to a month’s worth in premium dollars if you switched to yearly payments from monthly payments. So ask yourself if it’s worth it. The decision is entirely yours to make.