Don't walk with your feet... Remember that ad campaign for the Yellow Pages? If you are shopping for auto insurance, this is great advice. Look around, and do this every year. Don't just keep paying the bill over and over without looking for a better deal. Here are some tips to help you get the best deal on your car insurance.
A lot of freedom is given to insurance agents. They can match prices and offer a lot of deals. You can also make many choices about your policy that will save you a lot of money. For example, if you change the deductible on your collision insurance from $50 to $1000, you'll save a lot on your premiums. If you don't think you could pay $1000 out of pocket, change it to $500. You'll still save a lot on your annual premium payment.
If you change your comprehensive deductible, you can also save more money. Many people carry full coverage on their older cars when they don't need to. When they bought the car new, they paid for full coverage, and they still pay the same high rate today. Even though their 10-year-old car may only be worth $1,000 or less, they still pay $250-$450 every six months (a total of $500-$900 a year) to keep full coverage on it.
But if they get into an accident and total their car, the insurance company will only pay them the car's wholesale value. The amount they would get could be less than or equal to $1000. A car that old only needs the insurance that protects the other person in case of an accident.
You can also save more on your insurance by putting all of your policies together. This will save you money on both your car insurance and any other policies you have. If your insurance company doesn't offer a discount for having more than one car, it's time to switch. Also, many companies will give you a bigger discount if they also handle your homeowners or renters insurance.
You might not be taking advantage of a few other discounts. Even though it seems obvious, make sure you get the right rate for your age. You can save a lot of money with discounts for different ages. Talk to your agent about this. Also, most places will give you a discount if your car has an alarm system. Anti-lock brakes and air bags can also help bring down your insurance costs.
Don't just pay the bill every time it comes. When you get your insurance bill, you should automatically call around to see if you can save more money on your car insurance premiums.
