15 Ways To Save Money On Car Insurance
Written by Victoria Cathey on July 26th, 2009
Many people have a love-hate relationship with car insurance; you hate to receive a bill for something you hardly use, but you love it after an unfortunate accident (if you can afford the deductible). Listed below are tried and true steps that anyone can take to reduce their car insurance premiums.
Multi-Line Discount – a family can save a lot of money by simply putting all cars, motorcycles, homes, and apartments under one insurance provider.
Drive Less – If you were laid off or work from home, tell you agent. The distance that you have to drive varies by agency, but with State Farm you will receive a discount if you drive less than 100 miles per week.
Discount for Safe Driver – You might be eligible for a rate reduction if you have not been in an accident or received a ticket for several years.
Raise your deductible – Raising you deductible can save you hundreds of dollars every year, but make sure you have money saved to cover the higher deductible if needed.
Comparison shop – Let your agent know that you are looking at other agencies to reduce your monthly premium; it is likely the agent will pull some strings to keep you as a customer. Caution: if you find a better deal, confirm that it is not an introductory price. Many times your premium will increase to what you were paying with your previous insurance agent.
Discount for parents under 25 – Car insurance companies reduce their policy holders premium at the age of 25 assuming there have been no accidents, some insurance companies offer this reduction for parents under that age of 25. However, another reduction will not apply once you turn 25.
Full coverage or liability – You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.
Get insurance quotes before you buy a vehicle and choose vehicle color – the type, model and color will affect you premium. If you don’t want your premium to increase stay away from red sports cars. Also popular foreign models such as Toyota and Honda might have high premiums because they are stolen regularly.
Steer clear from short-term policies – You might receive a penalty for purchasing a short-term policy, go with long-term.
Don’t let your insurance lapse – A lapsed insurance policy indicates irresponsibility and high-risk. Avoid this at all cost. When you are ready to renew you will notice that your cost will have jumped tremendously.
Only insure cars that are driven – Cars that are inoperable do not need to be insured. To avoid any complications or penalties with your state, make sure your car is registered as ‘inoperable’.
Refresh your driving skills – confirm that the money you save when your premium is lowered outweighs the cost of the training courses.
Avoid accidents and tickets – Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 3-5 years.
Don’t insure teenager driver with your car – Premiums for a teenager driver is through the roof. Instead, purchase a safe, used car and only purchase liability. You will save hundreds of dollars.
Have good credit score- I don’t agree with this step for determining policy price, but some insurance companies are now using credit scores to calculate the cost of your premium. High credit scores have lower premiums and low credit scores have high premiums. Keep your score high.
Don’t pay your premiums monthly – I love this money saving tip! Avoid the monthly surcharge fee by paying for your premium semi-annually. Start saving to make the 1st semi-annual payment. Once that payment is made, automatically transfer the amount you would pay into a high-yield savings account to earn interest. When your semi-annual payment is due, withdraw the needed amount from you saving account. The interest you earned is now free money.
Out of the 15 options listed above, I hope at least one of them will help you save money on your car insurance.
Tags: Car Insurance, Finance, lower your car insurance premium, money saving tips, personal finance, save money, save money on car insurance, saving money
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