How to Save Money on Your Car Insurance
Prices may vary significantly from company to company. Find an independent agent who represents a wide range of companies. When you reach out to them, just ask which companies they represent. You should request quotations from at least 3 of them.
Before You Purchase a Car, Compare the Insurance Costs
When thinking about purchasing a new or used car, contact your insurance agent and ask them for an automobile quote for the car you are considering. Car insurance costs are determined by many factors, including, the cars price, costs to repair it, its safety record, and the likely hood of theft.
Include the monthly insurance costs in your automobile budget. Keep in mind insurance companies offer steep discounts for Theft Recovery Systems.
Ask for Higher Deductibles
All car insurance policies have a deductable limit. Think of it as the amount of money you will pay "out of pocket" before your insurance policy will kick in. By increasing your deductible, you are telling the insurance company you are willing to increase your self-insurance. Insurance companies view this as a good thing, as a result the higher the deductable, the lower the auto insurance premium. Before jumping in and changing your deductible, make sure you can financially absorb the additional risk.
Reduce Coverage on Older Cars
If you are driving around in an older model car, consider dropping the collision and/or comprehensive coverage. But remember, your collision coverage will pay to replace your car if you caused the accident. The comprehensive coverage will pay for damages caused by something other than a collision, such as glass breakage or windshield damage. You may want to check out the value of your car, compared to your insurance cost for these coverages, as it may not be cost effective if your insurance costs are higher than the value of your car.
Combine and Save
Most insurance companies offer discounts if you allow them to write both your home and auto insurance. Any independent agent is well aware of this and should be able to accommodate your request. Make sure you ask them to review several different scenarios, as your current home and auto companies may not offer the best combined rate. Also, placing more than one automobile on the same insurance policy may save you some money.
Take Advantage of Low Mileage Discounts
Once again, the less you drive, the less risk you have of causing an accident. Insurance companies offer discounts to those who may drive less than "average". Check with your independent agent who can provide you with information on what companies offer this discount.
Take Advantage of Group Discounts or Membership in an Auto Club
Some insurance companies may offer group discounts through their employers, or other associations. Some companies offer discounts if you are a member of an automobile club.
Seek Out Other Discounts in Which You May be Eligible
In order to write your auto insurance policy, a good agent is going to ask you a lot of questions. Why? Because he/she is going to want to help you take full advantage of the many discounts offered. Did you know some insurance agencies offer a "Good Student" discount, or a "Student Away Discount"? Make sure you take advantage of all the discounts in which you are eligible.