Unhappy with what you are paying each year for auto insurance? Car insurance is one of those things topics that I'm extremely Lazy with. It seems like there are a billion factors. Sometimes it seems like you can change one area of your insurance by a small amount and save hundreds - and then in contract add a ton of coverage in another area and come away with low bill. Perhaps it's worth spending a few minutes like some insurance companies suggest.
According to the Insurance Information Institute the average person paid $817 a year in 2001 - with prices in the most and least expensive states ranging to $300 more or less than that. That might be a good starting point. If you are already far below your state's average, maybe it's best to save your time and move on. If not...
Save Money on Car Insurance:
- Shop around - Gather quotes every six months to keep up with the rates and confirm you are getting the best one. Compare the quotes, especially what coverage you get with each and what the deductible is. A good way to get more affordable rates is to take a higher deductible, especially if you have an older vehicle.
- Ask for discounts - Agencies offer a variety of discounts, but you will need to be proactive in asking what they offer and how you can qualify. Some offer savings for getting all your policies under them (e.g., home, car, etc.), while others offer discounts for good driving records, yet another reason to avoid getting speeding tickets.
- Increase Your Deductible - Increasing the deductible on your insurance often makes a huge difference in the end price. Sure, you will lose out if get in multiple small accidents, but high deductibles is a great way to protect yourself from the big rare accident.
- Keep in Touch with your Insurance Carrier - If it's been a while since you last updated your insurance carrier, you may not be getting savings you are entitled to. Making changes such as getting a job closer to home can lead to driving less and provide a discount. Always let the carrier know if there are any changes, especially if they involve driving less miles per year, buying new vehicles or moving.
- Drive Safely - The longer you keep your driving record clean and avoid car accidents, the better insurance rates you will be offered. Good drivers are less of a risk to insurance companies. You will cost them less money in repairs, and they in turn will pass that savings on to you in the form of discounted rates.
- Watch your Credit Rating - Insurance companies do consider your credit rating when they quote rates. If you have a low credit score you are seen as a riskier prospect and you will get higher rates. If, on the other hand, you keep your credit in good standing you will be helping ensure you get lower premiums. You should review your report at least once a year, work to fix any errors, and try to keep all accounts in good standing.
- Drop Duplicate Coverage - For awhile I had AAA, which gave me some amount of towing... and then I found out I was also paying for it on my car insurance. Silly!
- Explore Combining Policies - Sometimes it's better to go with the family plan... other times it's not. It's worth looking into.
With the current economic crunch in the country, you may be thinking about ditching your auto insurance. This is a bad idea and even in illegal some states. A little money in insuance now really can save you a lot in the future.
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