15 Ways To Save Money On Car Insurance
Everybody hates bills, so why should car insurance premiums be any different. And just like other bills, such as cable, grocery shopping, and electricity, there are ways to save on the cost of car insurance. Listed below are 15 realistic approaches to help everyone reduce their premiums.
Multiple line discount - insure all cars and homes with the same insurance company to receive a discount
Limit Your Driving - If you work from home or were recently laid off, tell your agent. Many companies will reduce your premium if you drive less than 100 miles per week (varies by insurance agency).
Safe Driving Discount - You might qualify for a rate reduction if you have been accident-free for several years.
Raise your deductible - A bump up in the deductible will allow you to keep hundreds of dollars in your pocket. Over several years of being accident-free, that savings quickly adds up.
Shop around -- when your premium goes up, let your agent know you are looking; chances are they will find some other discounts.
Under 25 parent discount - At the age of 25, car insurance premiums decrease because insurance companies feel the driver is now more experienced. However, parents under the age of 25, will also receive this discount because the insurance companies feel a parent is more responsible. Note: you will not receive another reduction 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
Never let your insurance policy lapse " it might be difficult to obtain insurance again because the insurance agents see you as irresponsible or high-risk and your insurance may 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 - some insurance companies offer training courses that can reduce your insurance premiums at the end of the course. There are fees for these courses, so do the math and make sure the training course is worth your money.
Avoid accidents and tickets - Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 3-5 years.
Don't let your teenager drive your car - Teenagers are viewed as inexperienced drivers and cost a small fortune to insure. Instead of letting them drive your car, purchase a reliable used car and only get liability.
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.
Now all you have to do is call your insurance agent and start saving money on your car insurance.
Tagged with: car • Car Insurance • finance • lower your car insurance premium • money saving tips • personal finance • save money • save money on car insurance • saving money
Filed under: Car Insurance