Thursday, January 17, 2013
Tips for Saving on Auto Insurance.
It doesn’t really matter who you are or the exact state of your current financial situation: saving money on your monthly expenses is appealing to everyone. And since auto insurance is a must for every driver, learning how to save on your car insurance premiums each month is always a smart thing to investigate. There are countless ways to save; from very simple and easy to attain discounts, all the way to changing what kind of car you drive.
Here are just a few tips to save on auto insurance:
Ask Your Agent About Qualifying Discounts
Every insurance company offers different discounts so be sure to ask your specific provider about what kind of programs it may offer. Common discounts include a discount for people who drive low mileages each year, a safe driver discount for people with no accidents or tickets, senior citizen discounts, good student discounts for those with high grade point averages and even college graduate discounts. There are many ways that you can qualify to save on car insurance.
Request a Higher Deductible
When you raise the deductible on your insurance coverage plans, you must remember that this increases the amount of money you will have to pay to cover at the time of a claim. But the savings can be substantial and can really help you save on auto insurance if you don’t make any claims. As an example, it is estimated that you can save 15-30 percent by upping your collision and comprehensive deductibles anywhere from $200 to $500 higher than your current amount.
Reduce the Amount of Coverage on Older Cars
According to many auto insurance industry experts, a good rule of thumb when deciding to lessen your coverage is to follow this formula and it will help you save money on auto insurance. If your vehicle is worth less than ten times the amount of your premium, you can safely consider dropping either your comprehensive or collision coverage. Remember, liability insurance is required in most states and should never be dropped altogether.
Bundle All of Your Insurance Coverage with One Company
Insurance companies offer big discounts when you lump services together as an incentive for you to do all your insurance business with them. If you like your current car insurance provider, ask them if they can also take care of your home, fire, earthquake and life insurance coverage needs as well and the bundle discount can save on auto insurance.
Buy a Different Car
Depending on the type of car you drive, there are different rates of theft and accident claims associated with that model. For instance, if you drive a high performance sports car that tends to have a high number of accident claims with a high cost of repair then your premiums will be higher. If you drive a mundane car that no one steals and is typically driven by safer drivers, then your premiums will go down. Any insurance provider will gladly tell you which cars cost less to insure and you can save on car insurance.
Move to a Safer Neighborhood
Car theft and vandalism is a serious problem in the United States and depending on where you live and the crime rate in your neighborhood, your auto insurance carrier may see where your car will be parked most of the time as a liability. Insurance companies don’t take into account the area where you work even though your car may be parked there half of the day. While moving to a safer neighborhood may sound like an extreme way to save money on auto insurance, if it saves you from having your car stolen then it will save you a whole lot more than just what you pay for your monthly premiums.
Insure Your Whole Family with One Carrier
If there are multiple drivers in your household, always insure with the same carrier because you get a discount for having more than one person listed in your plan and will save money on auto insurance. This last one may sound like a no-brainer but it is one of the easiest ways to save.