10 Tips to
Save on Auto
Insurance
It costs a lot to insure an automobile. Who would argue?
It would cost us more to drive without it. No argument there, either. Still,
we don't have to pay too much for it. So, how can you and I save money on our
auto insurance premiums? Check out these 10 tips and see if you can get an
idea or two.
Check several insurance companies Dont easily
fall for "the best deal in town." Find out for yourself. Shop around. It would
be to your advantage to get at least 3 quotes.
Along with price, find out how the prospective company is
doing financially. Also, does the company have complaints against them? What
is their reputation for customer service? A good indicator of this could be
seen on your initial visit. For example, did they take time to answer your
questions or did they try to whisk you away quickly? Taking note of these
things could save you some regrets later.
Check insurance costs for the car you intend to buy
Your premium will be based on the particular vehicle's sticker price, repair
costs, overall safety record, as well as potential theft concerns.
You may want to consider features that reduce the risk of
injury or theft, such as daytime running lights or anti-theft devices. Why?
Because your insurance company may offer premium discounts for cars with those
features.
Pay a higher deductible It sounds backwards, but
consider it: If you were to increase your deductible from $200 to say, $500,
the cost of your collision and comprehensive coverage would be reduced
anywhere from 15 to 30 percent. A $1000 deductible would save you even more,
perhaps more than 40 percent. Of course, you'll want to be sure you could pay
the deductible if you needed to file a claim.
Reduce coverage on your older car It may not be
financially sound to keep collision and/or comprehensive coverage on your old
beater. Rule of thumb: Multiply your premium by 10. If your car is worth less
than that amount, consider dropping collision and/or comprehensive. Checking
Blue Book values will help you make this determination as well. You can check
your car's value online at www.kbb.com.
Insure your home and car at the same company
Insurance companies are always looking for new business, and you might get a
break if you buy two or more types of insurance from your insurer. If you have
more than one vehicle, you may also get a reduction in your premium. Also,
just recently, my wife and I received a reduced premium because we've been
their customers a long time. Perhaps you can do the same. Again, don't be
afraid to shop around. You never know what you can save.
Establish/Maintain a solid credit history
Granted, this can be a challenge with identity theft running amuck. However,
as much as it depends on you, pay your bills on time, don't obtain too much
credit, and most importantly, keep your balances either low or paid off as
much as possible. Check your credit report regularly to note any errors
needing correction. Additional tip: TransUnion will allow you to receive one
free credit report per year. Go to
transunion.com for
details.
Ask about Low Mileage Discounts If you drive far
less miles than the average driver, or even if you carpool, your insurance
company may offer you for low-mileage discounts.
Look into a Group Plan Check with your employer,
any professional, business or alumni groups that you belong to and see if it's
possible to insure through a group plan through them. Some companies may offer
discounts through them.
Other discounts may also be available You can
get discounts for your good driving record, such as no accidents or moving
violations for a number of years. A defensive driving course may also win you
a discount.
Remove unnecessary items from your policy This
may apply more to individuals who decide to buy a new car. Many lenders will
attach items like Roadside assistance to your loan package. Don't get me
wrong, this is a good thing, but most insurance companies already offer this
item on a full coverage policy. As we all know, full coverage is necessary
when financing a new car.
As you can see, there are several options. Even though
there are no "cookie cutter" strategies that apply to every single driver in
the country, there's a little something here for everyone.
Still, what works for you over the next few years may not
work later, depending on your circumstances. Don't be afraid to be an alert
consumer and review your needs on occasion. With these tips, we can all "drive
our savings" when we buy auto insurance.
