If you don't want to pay for expensive insurance...
Here are seven things you can use as "bargaining chips" to get a better insurance rate.
Cut the cost of your car insurance
One of the best ways to keep your car insurance rates low is to have a good driving record. Here are a few more ways you can save money.
- Compare prices
Make businesses fight over your business. Prices will be different from one company to the next. So, make sure to get quotes from at least 3–4 different companies. Make them work for your money.
Talk to your friends, neighbours, and coworkers about their insurance plans. If they like their insurance company, it's likely that you will too.
There are dozens of car insurance companies online that will give you a free quote (like FreeCarInsuranceQuotes.org and CarInsurance.com). This could be a good place for you to start. Keep an eye out and an ear out for radio and TV ads.
Again, these agencies want your business and are willing to compete for it, so don't settle.
- Ask to have your deductibles raised.
Before your insurance policy takes effect, you have to pay your deductible. Your insurance rates can be cut by a lot if you raise your deductible. For example, if your deductible goes from $250 to $500, your collision and comprehensive coverage will go down by 10–30%. If you raise your deductible to $1,000, you could save as much as 40% or more.
Just make sure you have enough money to cover yourself in case you need to make a claim.
- Put in place safety/anti-theft devices
If your car has one or more of the following: anti-lock brakes, automatic seat belts, air bags, or traction control, you may be able to get a discount on your insurance.
If you install a vehicle recovery system like LoJack or Teletracer, you can save between 7 and 10 percent per year.
Other anti-theft devices, like The Club, aren't too expensive and can help lower your insurance costs as well.
- Consolidate Insurance Policies
If you insure two or more vehicles with the same company, you could save as much as 10–15 percent on your insurance rates. If you insure your home through the same company that insures your cars, you could save an extra 10–15 percent on your rates.
- Teenagers and people going to college who drive
Teenagers and drivers who are going to college may want to drive the family car instead of their own car. Students who go to school and live away from home can save as much as 30–50% on their premiums this way.
- Use the discounts for low mileage
People who carpool to work or find other ways to keep their mileage low can get lower insurance rates from many companies.
- Courses on safety
Along with having a clean driving record, taking more driver safety courses could save you 7–10% on your car insurance. If you get a ticket for speeding, find out what kinds of courses they offer. If you agree to take and finish these courses, some states will let you keep your insurance record clean.
Conclusion
In many cases, knowing what questions to ask and what you are entitled to can help you get a better deal on your car insurance. Since most businesses won't do your research for you, here's a short list of discounts you should ask about:
[] Not Many Miles
[] Deductible of $500
[] Deductible of $1000
[] Not Just One Car
"No accidents in three years, five years, etc."
No moving violations in the last three years
Course for Learning to Drive
[] Defensive Driving Courses
[] Devices to stop theft
Features for Safety (like Air Bags, Anti-lock Brakes, Daytime Running Lights, etc.)
Students with good grades who want to drive
[] Bringing Policies Together
Students Away from Home in College
[] Regular Customers
Discounts for people who don't smoke and older people
Different states and insurance companies have different rules about deductions. So, don't forget to ask.
Also, the key to getting a lower rate on your car insurance is not always how many discounts you can get. What counts is the bottom line.
