With all the other things you have to think about, have you put your car insurance on autopilot? It's not your fault if you have, because a lot of people do the same thing. The insurance companies count on it, in fact. By raising your rates over time, they can make more money.
But maybe it's time to look over your policy and see if there are other options that could save you a lot of money this year.
Here are 10 tips that can help you decide if you are paying too much for auto insurance:
Request higher deductibles.
Your auto insurance deductible is the amount you agree to pay out of pocket before your insurance company pays its share to fix your car. Ask about raising your deductible from, say, $200 to $500. You might be surprised at how much you can save every year. You could save anywhere from 15% to 30% on the cost of your collision and comprehensive insurance. If you raise your deductible to $1,000, you might be able to cut it even more, maybe by at least 40 percent or more.
Don't pay for insurance you don't need.
Do you drive a beat-up car? Think about getting rid of collision and/or full coverage all together. Who needs to pay an insurance premium that is more than the car is worth? So check online to see how much your car is really worth. This is possible on Edmunds.com.
Don't pay for two kinds of health insurance.
If you already have good health, life, or disability insurance, just buy the minimum amount of personal injury insurance your state requires.
Don't buy a car that is easy for thieves to take.
It costs more to insure a car that car thieves like to steal. ConsumerAffairs.com has a lot of information about this. Also, don't buy a car that is hard to fix or costs a lot to fix.
Drive less.
A "low-mileage discount" is something that a lot of insurance companies offer to drivers who qualify. So, if you can carpool to work, you might save money on both gas and insurance. Not only that, but your car will have less wear and tear as well. Lastly, many cities give carpoolers a fast lane on the freeway or interstate, so you'll also get to work faster. Call your insurance company and ask if you qualify.
Things that make you safer can also save you money.
Did you know that if your car has automatic seat belts, anti-lock brakes, or daytime running lights, you can often get a discount? You can also save money if you have an approved alarm system or other device that keeps your car from being stolen.
Add your child to your insurance.
Putting teens on their own policy is too expensive. Also, if your teen stays in school and passes an approved driver's education course, you can get a discount on their insurance. Lastly, if your teen goes to college more than 100 miles from home, they can get more discounts if they leave their car at home.
Put the insurance on all of your family's cars with the same company.
Many insurance companies will be happy to take your payments for more than one car at once. Not only that, but you'll save even more if you also buy homeowner's insurance and/or life insurance.
Just ask, "What are some other discounts I should know about?"
If you're over 50 and/or retired, groups like AARP might be able to give you a discount. If you haven't had any accidents or points on your record, you might be able to get a safe-driver discount. If you've been with your carrier for a long time, you might be able to save money that way, too.
Before paying extra for roadside assistance, you should think about it.
Here's the thing: getting towed could make your insurance more expensive or keep you from getting coverage. And to make things worse, you might have been covered by your credit card. Look at it. Sometimes, the best deal of all might be to get roadside assistance from a company that is not part of a chain.
Conclusion
Now you know that there are lots of ways to save money on your car insurance. Pick up the phone and find out what's going on. Who wouldn't want a few hundred (or a thousand) extra dollars to save or spend?
