Do you spend too much on car insurance? If you think you're paying too much for your car insurance now, the following tips might help you save money:
- Compare prices
You've probably read this tip everywhere, but it's still good advice. Only if you shop around for auto insurance coverage and get quotes on premiums from several insurance companies will you know for sure that you are getting the best rate for your car insurance coverage.
When you're looking for auto insurance, make sure to compare more than just rates. Ask how insurance claims are approved and processed, and how quickly they are paid. Check how stable each insurer's finances are (there are independent rating services that can help you with this.) Remember that you'll have to deal with the insurance company when you're stressed, like after an accident. You'll want to make sure you'll get help when you need it the most.
- Choose a higher deductible on your insurance
A deductible is the amount you pay when you file a claim before your insurance company pays the rest. People often choose lower deductibles so that when they have to file a claim, they don't have to pay much out of pocket. But the truth is that your auto insurance premium goes down as your collision and comprehensive deductibles go up. If you raise your deductible from, say, $250 to $1,000, you can save a lot of money. You can save hundreds of dollars on your insurance premium.
On the other hand, if you need to make a claim on your insurance, you will have to pay the deductible. So choose the highest deductible you can afford. The higher it is, the better, because it will save you money on your car insurance premiums.
- Get rid of or lower coverage for older cars
If your car is getting old, you might want to think about dropping collision or comprehensive coverage (or both) from your policy. But you need to think about this one, because it's not always clear what to do. You need to think about how much the two coverages cost, how much your car is worth, and what your deductibles are. For example, if your car is 10 years old and worth about $1,000, but your deductible is $1,000, the coverage won't help you.
- Ask about special deals
Discounts are offered by most insurance companies. Ask if there are any discounts you can take advantage of. The discounts you can get will depend on your insurance company, where you live, and whether or not you qualify. Here is a list of some of the most common discounts (if they are available in your state; each insurance company will have different requirements to qualify):
- Multi-line discount: If you insure your home and car with the same company, you can get a discount.
- Good driver discount: If you haven't been in an accident or gotten a ticket in a long time, you can save money.
- You can get a discount if you insure more than one car with the same company.
Good student discount: If you are a student with good grades, usually around a B average, you can get a discount.
- Anti-theft discount: If your car has certain anti-theft devices, you can get a discount on your insurance.
- Auto club discount: If you belong to an auto club, like AAA, you can get a discount.
- Discount for safe cars if they have certain extra safety features
- Low mileage discount: If you don't drive your car much, you can save money.
- If you work in a certain field or have a certain degree, you can get a discount.
- Retiree discount: If you're a certain age, usually 50 or 55, you get a discount.
- Safe driver discount: If you've taken and passed an approved driver safety course, you can get a discount.
Association discount: If you belong to certain groups, like your alma mater, you can get a discount.
#! Away-at-school discount: If your child goes to school out of town, you can get a discount.
- Choose a car whose insurance costs are lower.
If you're looking to buy a new car and have narrowed your choices down to two or three, compare their auto insurance rates to see if there is a big difference in how much it will cost to insure each one. Remember that insurance rates are higher for cars that are stolen often and cost a lot to fix. If there is a big difference between how much it costs to insure your first choice car and your second choice, you may have to think again.
- Drive safely
This one is pretty obvious, but it's true. Drivers who have never been in an accident, gotten a ticket, or made a claim on their insurance almost always pay less for their car insurance. Your driving record is an important part of figuring out how much your insurance will cost. Tickets and accidents where you were at fault can raise your insurance rates for years. If your driving record isn't perfect, you may end up paying a lot more in insurance premiums over the years.
