No matter what you spend on bills each month, there’s always a way to save money. When trying to save a few dollars, many people forget about their auto insurance. Just because you’re in the middle of a policy term doesn’t mean you have to wait until you sign new documents to save some cash. Check out these great tips for lowering your auto insurance rate.
Stick with one Company
We have insurance for a variety of needs: home, auto and life are the most common. Consider maintaining all of your policies with one company. All insurance companies offer customers a savings called a multi-line discount.
Reduce Coverage
If your car loan is paid off, consider dropping your collision coverage. Collision pays for the damage that you cause to your vehicle, not the damage you cause to someone else’s. If you are accident free, dropping this coverage won’t be a huge risk.
Reduce Coverage
If your car loan is paid off, consider dropping your collision coverage. Collision pays for the damage that you cause to your vehicle, not the damage you cause to someone else’s. If you are accident free, dropping this coverage won’t be a huge risk.
Raise Your Deductible
Many people choose a lower deductible so they don’t have to pay a hefty out-of-pocket expense should they have an accident. If you raise your deductible from $250 to $500, you’ll see a substantial savings. If you raise it to $1,000 your savings will be even greater.
Shop Around
Insurance companies are fairly competitive. Shop around for the best premium you can find. If you’d prefer to deal with a different company, call them back and find out if they can match the rate of the other company.
Ask for Discounts
Are you a good student? Do you drive very little? Are you a member of a union or professional organization? Ask your insurance agent what discounts are offered and see what you qualify for. Not all discounts are widely advertised and your agent isn’t going to check in with you to see what you qualify for. Call your company if your life or driving circumstances change and see if you can reap discounts!
Pay Every Six Months
While monthly payments may be convenient, paying your premium every six or 12 months will save you money in the long run. Try to put money aside each month so that when your next policy is put into effect you have the money to pay up front.
Take a Course
Many insurance companies offer better rates to those drivers who have completed a driver’s safety or defensive driving course. Depending on the cost of the course, it may be beneficial to enroll yourself in one.
Drive Safely
If you can avoid traffic tickets and collisions for a set period of time, your insurance company will lower your rate. The period of time can vary so speak to your agent about their company’s requirements.
Saving money on auto insurance is possible; you just have to know where to look and what to ask for. If you’ve not taken the time to review your policy since you signed your original documents, what are you waiting for? Pull out your policy and call your agent to see how you can lower your premium!
Richard G. Hamilton is an business planner and content contributor for online insurance sites. The car insurance rates at Kanetix also show comparisons and information for the U.S. and Canada.
