Save Money On Car Insurance Today
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.
Multiple line discount - insure all cars and homes with the same insurance company to receive a discount
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.
Safe Driving Discount - You might eligible for a discount if you have been free of accidents and tickets for several years.
Increase your deductible - A deductible increased from $250 to $500 can save a family hundreds of dollars a year. However, if you increase your deductible, make sure you have the extra $250 if you have to file a claim.
Shop around for deals - Tell you agent you are shopping around for cheaper premiums. If you are valued customer, your agent should re-evaluate your policy and look for ways to reduce your premium.
Update agent if you are a parent under the age of 25 - You might receive the same rate reduction given at the age of 25. However, you will not receive another deduction once you turn 25.
Full coverage or liability - determine if full coverage is still needed by checking the blue book value of your car at Kelley Blue Book. If the value of your car is worth more than the cost to repair it, keep full coverage, if not, drop down to liability.
Talk to your agent before buying a new car - The shiny red sports car and the gadget filled luxury car might look good on the dealership floor, but the premiums might cost an arm and a leg. Check prices with your insurance agent to help you make the best decision.
Avoid short-term policies - Penalties are often applied, think long-term
Avoid lapses in your insurance - If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.
Only insure cars that you drive - The old Ford that has not been driven in years should not be insured. However, depending on the state you live in, all registered vehicles must be insured. To avoid any problems make sure you register any non-working vehicles as 'inoperable'.
Refresh your driving skills - Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.
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 a high FICA score - Many insurance companies are now factoring in ones credit scores to calculate premium cost. A person with a high credit score is rewarded with a lower premium and a person with a low credit score will be punished with a high premium.
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.
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