Ten Ways to Spend Less $ on Auto Insurance
Who doesn’t like to save money, especially when it comes to something that you have to have? If you own a vehicle, you are legally required to have car insurance. Unfortunately, car insurance can be very expensive. Fortunately, there are ways you can save money on your auto insurance without sacrificing the quality coverage you need to protect yourself.
To help you, we’ve compiled this list of 10 ways to save money on your car insurance.
- Combine your policies into one
- Spend less time on the road
- Opt for a higher deductible
- Ask about other discounts you may qualify for
- Be a safe driver
- Forget about unnecessary coverage with older cars
- Look into safety features
- Take the time to comparison shop
- Consider the costs of insurance before purchasing your car
- Pay attention to your credit history
Combine your policies into one
Most insurance companies offer discounts to multi-policy holders. So, if you have other insurance policies, such as homeowner or rental, you may want to consider using one carrier for both policies. This is also a good idea if you own more than one vehicle or have multiple family members on the same plan.
Spend less time on the road
If you are constantly driving, you increase your chances of being involved in an accident or getting a moving violation. As a result, insurance companies tend to reward drivers who spend less time on the road. To qualify, you’ll have to drive less than a certain number of miles each year. You will most likely to have to provide some sort of proof, but it will be worth the effort.
Opt for a higher deductible
The higher your deductible, the lower your premium will be. With that being said, if you are involved in an accident, you will have to pay more out of pocket. It may be worth it, though. Increasing your deductible by a few hundred dollars can save you as much as 15 to 40 percent on your premium costs. It’s a good idea to put aside some of the money you save each month just in case you are involved in an accident and have to pay your deductible. (On a side note, claims are filed an average of every 11 years, so there’s a good chance it may be quite a while before you have to file a claim.)
Ask about other discounts you may qualify for
You’d be surprised just how many discounts insurance companies offer. You simply have to ask about them. For example, teenagers who have completed drivers’ ed and/ or have good grades often qualify. Certain people may also be eligible for discounts, such as drivers over the age of 50/55 or who are members of professional associations, alumni groups, and business groups. You may even qualify for a discount based on where you work. Don’t be afraid to ask what is available to you.
Be a safe driver
Insurance companies appreciate drivers who make every effort to drive safe. To show their appreciation, they usually offer good driver discounts. To qualify, you’ll need to have a driving record that is free of moving violations and accidents. If your driving record is less than perfect, you may want to look into taking a defensive driving class. Your insurance company may offer a discount for your efforts.
Forget about unnecessary coverage with older cars
As your car gets older, its value depreciates. If your annual collision/ comprehensive insurance premiums exceed 10 percent of your car’s current value, it’s a good idea to drop that coverage and opt for liability only.
Look into safety features
Many car insurance companies will give you a discount for certain safety features. This includes equipping your vehicle with an alarm system, running lights, antilock brakes, and automatic seatbelts. Essentially, anything that decreases your chances of theft or injury may be considered a safety feature.
Take the time to comparison shop
To ensure you get the best insurance rate, comparison shopping is an absolute must. Just like you wouldn’t purchase the first vehicle you look at; you shouldn’t purchase the first insurance policy you get a quote for. As a general rule, shopping around and getting quotes from a minimum of three different companies is strongly recommended. You can do this by using online insurance comparison sites, calling the insurance companies directly, or even asking friends and family about their own insurance policies and rates. You may also find your state’s department of insurance website helpful. They often include details on rate comparisons, complaint ratios, customer ratings, and contact information for multiple major insurance companies.
Make certain that you are comparing similar policies among the different insurance companies. Also, consider the company’s customer satisfaction level, as you will have to deal with them if you ever file a claim. You want that to be handled quickly, honestly, and properly. Choose a company with a good reputation.
Consider the costs of insurance before purchasing your car
Most people are excited to buy a new (or used) car. In some cases, they are so excited that they forget to look into their insurance costs before finalizing their purchase. Always take the time to consider your insurance costs before your purchase. Keep in mind that insurance premiums can vary greatly, depending on a variety of factors, such as the vehicle’s age, cost, safety record, whether or not it’s often a target of thieves, and average repair costs. Do your homework!
Pay attention to your credit history
Insurance companies view drivers with stable, established credit histories as safer drivers who are less likely to be involved in an accident. As a result, more car insurance companies are looking at credit scores when calculating rates and premiums. This is why it so important to keep an eye on your credit rating and periodically check your credit report to make certain everything is correct. You can easily check your credit report using any of the multiple online services that are available.
Saving money on your car insurance is possible. Use the tips discussed above to help you find the best deal.