11 Ways To Save On Car Insurance
So you’re shopping around for auto insurance. What do you need to know? Well, there are lots of ways – at least 11 – that you can save money. Many of these money-saving ideas may apply to you.
- One Insurer, Multiple Policies – Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you’re paying too much – for both policies. Tip: Talk to your agent about multi-policy discounts.
- Good Driver, Good Price? – It’s no secret that the better your driving record, the less you will pay for auto insurance. Some good drivers pay a lot more than others, however. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies. These middle people pay less than the worst drivers, but more than the best. Tip: Make sure you’re getting the best discount for your driving record. Talk to your agent.
- The Beauty of the Bus (or Other Mass Transit) – Do you drive to and from work? Insurance companies charge you significantly higher premiums if you drive to work. Tip: Some drivers should consider mass transit.
- Low Mileage, Low Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use. Tip: If you drive less than the average, you could be eligible for low-mileage discounts.
- High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.
- Raise Your Deductible – The deductible is the amount you pay before insurance kicks in if you have a claim. If you have assets, you can probably afford to absorb at least $250 and probably $500 if you have a claim. Tip: If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less premium each year.
- Drop Unnecessary Coverage – Let’s say you have an older car, one not worth very much. You don’t have much to protect. Tip: As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage.
- Discounts, Discounts, Discounts – Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. Tip: Make sure you are taking advantage of all the discounts available to you!
- Taking the Defensive – Many insurance companies also offer discounts to those who have taken defensive driving courses recently.
- Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. The costs can vary even within a community. Fact: Rates can really vary from state to state.
- Credit Where Credit Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies. Fact: Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor.
Whatever your driving record or coverage needs, you should shop around, or let an experienced insurance professional shop around, for the best deal for you. In addition, not only should you try to get the best deal you can, you also need to make sure you have all the coverage you want/need. Using an Independent Insurance Agent is usually your best bet to get the most value for your auto insurance dollar.
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