Most people's car insurance is their second-biggest insurance cost after their health insurance. It seems like rates are always going up and are always high. By doing these easy things, you can save money on your car insurance premiums.
- Compare prices.
Shopping and comparing prices does pay off. Changes in the rules at the state level may have made it easier for new companies to enter the market, making it more competitive and lowering rates for consumers.
2. Raise Your Deductible.
A $200 deductible seems like a good idea until you find out that having a deductible at this level can make your rates skyrocket. You could save money on premiums by choosing a deductible as high as $1000. Small problems can always be fixed on your own.
- Get rid of Collision. If your car is worth less than $2,000 or $3,000, you might want to drop collision coverage all together. Even though you won't get anything from your insurance company if your car is totaled, you can use the money you save by dropping collision as a down payment on your next car.
- Look for sales and deals.
Make sure your insurance company knows if your car has certain safety features. Most older cars don't have air bags, but if you have a model with airbags, your insurance will be cheaper.
- Deduction for a business. If you use your car for business, you may be able to deduct some of your insurance costs. On the other hand, your rates may go up if your insurance company knows you use your car more for work than for fun.
- Combine Policies.
If you buy your home, car, and life insurance from the same broker, you may be able to save money on your premiums. Some insurance companies give discounts to customers who buy all of their insurance from the same company.
Think About It Before You Buy.
Even if the Porsche Boxster is your dream car, your insurance rates could go up by a lot. Maybe a model that isn't as sporty would be best.
- A course on how to drive.
Your insurance company may not have taken into account the fact that you took a driver's education course when they set your premium. Tell them that you are a good driver.
- Points taken away.
If you got a ticket for speeding and told your insurance company about it, make sure that your premium goes down if a few years have passed since the ticket. You might be paying more for your insurance than you should.
If the insurance company has the wrong address, town, or zip code on your policy, you could end up paying more than you should.
Your car insurance costs shouldn't be impossible to cut down on. If you follow these steps, you should be able to save money the next time you have to review your policy.
