Automotive insurance can be a big chunk of your overall expenses – especially if you own more than one vehicle. There is a good chance that right now, you are paying too much for your car insurance.
The internet has created increasing competition between car insurance companies. It’s easier than ever for consumers to shop for lower insurance rates, to analyze coverage and compare premiums. You can save money on your car insurance in many ways.
Here are a few ways:
Renewal and Combined Discounts: Consider combining your auto and home-owner's insurance under one policy. Many insurers give a discount for multiple policies
Raise your Deductible: Ask your agent what you can save by raising the auto collision insurance. Often times, raising the deductible from $200 to $500 or even $1000 can save you anywhere from 10%-35%. If you have a good driving record, you could come out ahead.
Drop Collision and Comprehensive Insurance on Older Vehicles: This type of coverage is required if you have a car loan, but for older cars that are owed free and clear it may be a good option to drop. You will want to consider what your car is worth and what your insurance premium is. If your car is older than 5 or 6 years and is worth less than $1500, keeping collision and comprehensive coverage may not be worth it. Always
Shop Around for Insurance: If you driving record is respectable, shop around to see how much you can save. You may be used to your current insurance company, but it could be well worth the switch if you can save hundreds a year!
Make Sure Your Insurance Includes all Available Discounts: For example, make sure your car is listed as having safety features such as seat belts and air bags. Also, if you are insuring your child driver, they often offer good student discounts.
Avoid Tickets: Many insurance companies give a discount up to 20% if you have not had an accident for three years or more. Try to avoid speeding or moving violations and it will pay off big.
When Buying a New Car: Ask your agent whether the model you are considering will require a surcharge due to higher theft, damage or repair costs. If you are able to follow a few of these suggestions, it should save you some money each year! It doesn’t hurt to call you agent and ask if they can lower your rates at all - you never know what they might say!