Auto insurance is a necessary expense for most of us. Even with seemingly increases every year, very few of us stop and see if there are ways that we can reduce the cost of our auto insurance. One of the best ways to keep your auto insurance costs down is to have a good driving record. Listed below are eight additional ways that you can start to save money on your auto insurance.
1. Shop Around
Don’t settle for the price that your insurance company wants to charge you. Auto insurance prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information or if you don’t want to deal with insurance agents, use the Internet to get multiple quotes.
Don’t shop price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company.
2. Compare Insurance Costs When Buying A Car
Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. Look for cars that have safety features like daytime running lights and anti-theft devices.
3. Get A Higher Deductible
Deductibles are what you pay out of pocket before your insurance policy kicks in. By getting a higher deductible on your car insurance policy you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15% to 30%. Going to a $1,000 deductible can save you 40% or more.
4. Reduce Coverage on Older Cars
This is one of the most overlooked tactics to lowering your insurance. As your car ages it becomes less costly to replace, so why pay a premium for a replacement value that is more than your car is worth? A role of thumb is that is that your car should be worth more than 10 times the premium you are paying.
5. Buy your Homeowners and Auto Coverage from the Same Insurer
Many insurance companies will give you a break if you buy two or more types of insurance from them or if you insure more than one vehicle with them. Ask for your insurance representative what multi-car discounts that they offer.
6. Maintain a Good Credit Record
More and more insurance companies are not using credit information to help price auto insurance policies. So paying your bills on time, bit obtaining more credit than you need and keeping your credit balances as low as possible are all tactics that can help you get a lower auto insurance quote.
7. Ask about Group Insurance
Some insurance companies offer reductions to drivers who get insurance through a group plan from their employers, professional and business groups, or other associations (like AAA). Look at the clubs and associations that you belong too and see if any of them offer discounted auto insurance.
8. Seek Out Other Discounts
Ask your insurance company for a list of all the different types of discounts that they offer. You would be amazed at the discounts that are available on auto insurance today. They range from discounts to being in the military, to students and people who have had no accidents or tickets in a number of years.