Getting auto insurance is an important part of your overall financial planning. The amount you pay for auto insurance depends on the company you choose and the type of coverage you want. Here are some tips to help you save money.
"Shopping around"
- Compare the prices by getting quotes from at least four or five insurance companies. Use your friends, family, and the yellow pages to help you. Your insurance company should have good service records and fair prices. Check the company's financial ratings because they show how strong and stable the company is.
Ask for your deductibles to be higher.
- Deductible is the amount of money you have to pay out of your own pocket before you can make an accident claim. The deductibles are sold with the collision and full coverage. The premium rate will be lower the more you have to pay out of pocket. If the deductible goes from $200 to $500, the cost could go down by 15% to 30%.
Drop collision and full-coverage insurance on old cars.
- If the market value of your car is less than 10 times your premium, you might want to drop collision and comprehensive coverage.
Buy auto insurance from your current insurance company.
- Buy insurance from the company you already have. This could help you cut down on costs. Customers who stay with a business for a long time can sometimes get lower rates.
Avoid having two health plans.
- If you think you have enough health insurance, don't get health insurance through your car insurance. You'll save money by doing this.
Keep your credit record clean.
- Insurance companies use a person's credit history to figure out how much to charge for insurance. Statistics show that the more claims you make, the worse your credit score is. People with good credit are more likely to be able to settle the accident without the company's help. Try to keep your credit record clean.
Cars with a low profile can get discounts.
- Rates will be higher for cars that are hard to fix or that thieves like to steal. You might want to buy a low-key or average car because your insurance company might give you a discount if you do.
Take advantage of the discount for low mileage.
- Get a discount on your insurance premiums if you drive less than the national average number of miles per year.
Talk to someone about a group discount.
- When you join a group plan through your employer, a business group, or another group, you may be able to get a discount. Find out if there is a plan like that.
Look for a discount on car safety.
- Some insurance companies will give you a discount if you keep your car's air bag, anti-lock brakes, anti-theft devices, and automatic seat belts in good working order. Make the most of this.
