How To Reduce Car Insurance
You can reduce car insurance premiums by quite a bit if you take advantage of some useful information. Most people are paying more for car insurance than they need to. Don’t be one of them. There are several simple things that you can do to lower your auto insurance. Most people just don’t take the time to do it.
Raise your deductible.
Let’s say you have a $200 deductible on your policy. If you raise your deductible to $500, you could reduce the cost of collision and comprehensive coverage by as much as 30%. If you raise your deductible to $1,000, you could lower your premium by 40% or more. If you decide to do this to reduce car insurance, make sure that you have enough money put aside to cover the higher deductible in case you do get into an accident.
Reduce Coverage on Older Cars
You may want to consider dropping collision and/or comprehensive coverage on your older cars. If your car is worth less than 10 times the premium, comprehensive coverage really isn’t worth it. Check with your bank or Look up the value of your car online at Kelley’s Blue Book (http://www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.
Take Advantage of Low Mileage Discounts
Many insurance companies offer discounts if you drive a lower than average number of miles a year. These offers can also apply to drivers who car pool to work. This is a great way to reduce car insurance.
Take Advantage of Multiple Policy Discounts
Getting your car insurance, boat insurance, motorcycle insurance and/or homeowners insurance from the same company will usually get you a nice discount.
Consult your insurance agent before you buy a car or truck.
Premiums can vary significantly from one type of car or truck to another. Insurers consider things like repair costs, the likelihood the vehicle will be stolen and the model's safety record when setting premiums. You can check out different vehicles' "crashworthiness" ratings at the Insurance Institute for Highway Safety website.
If you're thinking about switching insurers to reduce car insurance, start shopping around well before your current policy expires.
Many insurers are offering an "early shopping" discount of up to 12%. According to Sam Biden of Insurance.com, Insurers view someone who looks for a new policy ahead of time "as being a responsible consumer, as opposed to someone who's in trouble with their current company". Just make sure that your new coverage in place before you cancel your old policy.
Maintain a Good Credit Record
It may not seem fair, but many companies are turning to credit reports for guidance on pricing policies because they feel that it is an indication as to how responsible you are. Make sure that you pay your bills on time and check your credit report annually for errors.
Ask About Group Insurance Discounts
Some companies offer discounts to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups, or other associations. Membership warehouses like Sam’s Club, Costco and BJ’s often offer these discounts as part of their membership package.
When inquiring about insurance, use this checklist as a guide to getting discounts:
[ ] $500 deductible
[ ] $1,000 deductible
[ ] More than 1 car
[ ] No Accidents in 3 Years
[ ] No Moving Violations in 3 Years
[ ] Driver Training Courses
[ ] Defensive Driving Courses
[ ] Anti-Theft Devices
[ ] Low Annual Mileage
[ ] Air Bags
[ ] Anti-Lock Brakes
[ ] Daytime Running Lights
[ ] Student Drivers with Good Grades
[ ] Auto and Homeowners Coverage with the Same Company
[ ] College Students away from Home
[ ] Long-Time Customer
[ ] Other Discounts
Just because a company offers discounts, doesn’t necessarily mean it will give you the best price. The bottom line is who is going to give you the best price and reduce car insurance rates.
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