Listen: With the way the economy is going, gas prices going up, and taxes going up, saving money is more important than ever. Your car insurance is one place where you can save a lot of money.
But do you know what's cool? No matter how many ads we see from companies like Geico and Progressive telling us to shop around and find the best rate, 90% of people never shop.
Make sure you're not one of those people. You work long hours, and you don't want to leave money on the table that you could save on your car insurance. By making a few phone calls and shopping around, you can save hundreds or even thousands of dollars a year.
Now, the Insurance Research Council says that you can save almost $900 a year on your car insurance if you shop around. Think about how much you could buy with $900 a year.
Where do you begin? Well, you should call your insurance company and ask if you are eligible for any of the discounts they offer. I bet you don't even know about all the discounts you can get. There are discounts on auto insurance for things like having a good driving record, but did you know you can also get a discount if you're a student with good grades? Now, it might only be 2–5 percent, which doesn't seem like much. But think about how much car insurance you have to pay. All of a sudden, a few percentage points here and there do add up.
If you've never been in an accident, you'll get the biggest discount. On its own, this can save you up to 20% per year in discounts and savings. But once you buy a single ticket, the discounts are gone. So be careful.
And since we're talking about tickets, check to see how many points you have on your licence. If you can't remember, call the Department of Motor Vehicles and ask them to look up your record. And if you have more than 3 or 4 points, taking a safety class could get you a discount. Now, a lot of car insurance companies offer classes to encourage safe driving. If you take one of these classes, your insurance costs may go down. We're not asking for a lot of your time — maybe one day or four or five hours spread out over a few days. Most of the classes cost a small amount of money, maybe $20 to $50. But that's a small price to pay to get a big discount on your car insurance.
You should shop around every couple of years, but that should go without saying. Compare prices and shop around. Even if you think the auto insurance company you have now is the best, things can change.
Where you live also affects your rates. Shop around for auto insurance if you've moved or are planning to move. Your car insurance company might offer a completely different rate for the city you're moving to.
So, that's the truth about how to save money on car insurance. Compare prices as you shop around. Also, be sure to drive safely. It does pay.
