Some consumers see insurance as a complicated and necessary evil. Others see it as a must-have form of protection and stability. Love it or hate it, we can all agree that the cost of protecting our loved ones and stuff is expensive. If you’re ready to start saving money on your car insurance, you’re in the right place. There are several smart ways to get this expense reduced. We’ve put together 15 tips on the next page to help you save money on a car insurance without sacrificing quality in the process.
1. Know What Auto Insurance Coverage You Need
What you must first do is to make a list of the coverage you want in your auto insurance portfolio. Make sure you know what you are buying, and know why you are buying it for. Do you really need personal injury protection, if you already have health insurance in place? Do you already have other personal insurance coverage that already includes damages to your property (which might include automobiles)? Review all your insurance policies before you buy the auto insurance policy the agent is touting. This way, you will save on auto insurance premiums by not buying duplicated coverage.
2. Shop Around For The Best Insurance Coverage
You must always do your market research before you put your money down. An easy way will be to simply use the various quoting tools found online. These tools immediately generate the best quotes for a particular auto insurance policy according to your profile. This saves you a lot of time and effort. Once you have shortlisted about 3-4 auto insurance companies, it is time to look for reviews about these companies. Go for the insurance companies that have armies of satisfied customers, while staying far, far away from the ones that had their name smeared by disgruntled clients.
3. Bundle Your Options
If you have other types of insurance from one particular insurance company, don’t hesitate to ask about bundled options! Many insurance companies offer discounts and rebates for customers who add-on and combine insurance packages in their current portfolio. In addition, if your family has more than one car, you should opt to insure all these vehicles under one insurance scheme. Many companies offer discounts for multiple vehicles insured under one policy.
4. Modify Your Deductibles
You should also consider the amount of deductibles you are willing to pay when you buy your auto insurance – they can help you save on auto insurance. All insurance companies will require you to agree on the amount for your deductibles, and this amount will have an effect on your premiums. Determine the amount of deductibles you are willing to pay – the higher the deductible, the lower the premium.
5. Get Membership Discounts
If you are a member of AAA, AARP, Chamber of Commerce, Better Business Bureau, etc., you are most likely eligible for auto insurance discounts! Make sure to ask your auto insurance agent for a list of organizational discounts. It’s more than likely that you are part of some club that will grant you a sweet auto insurance price cut. We aren’t saying that your AA (Alcoholics Anonymous) participation will save you on car insurance, but some other groups might.
6. VIN Etching
Here is a simple countermeasure to car theft that many people have never even heard of. It involves engraving your vehicle’s VIN number into your windshield and car windows. Apparently, when potential thieves see this on the car, they shy away and go steal another vehicle. Who needs a lo-jack?! Just get a VIN etching instead!
7. Pay Per Mile Auto Insurance
If you’ve never hear of pay-per-mile or pay-as-you-go auto insurance, now is a good time to educate yourself on it. Many auto insurance companies now allow you to pay for only the time your are behind the wheel. The way they keep track of this is by installing a tracking chip that records miles driven. If you do not drive that much and are not a “big brother conspiracy theorist” who thinks that this is just one more way for the government to keep an eye on you, then you might want to consider this.
8. Have Good Credit History
Just like any other kind of insurance, you can be sure that the insurance company will also do their own research and check your record. They will definitely take a look at your credit history. Having good credit history has many benefits, including lower insurance costs. If you have good credit history, then you can get cheaper or better rates and better premiums. You can even use your credit history as leverage to get better rates from your insurance company.
9. Take Advantage of Low Mileage Discounts
There are a lot of companies that offer special deals and discounts for motorists that drive less than the national average number of miles per year. Having low mileage can make you a good candidate for a great car insurance premium. Low mileage discounts are also given to drivers that carpool to work or school. Keep your average mileage information available the next time you apply for car insurance.
10. Defensive Driving Classes
Car insurance companies offer discounts to clients who have underwent defensive driving courses. These driving courses teaches drivers to drive defensively, and this apparently decreases the probability that these defensively-trained drivers of getting into an auto accident. If you have certification on these courses, don’t hesitate to take it out, and use it to get better quotes for your insurance package.
11. Drive Hybrid Vehicles
“Going green” is a new buzzword that has been sweeping the nation for years. Basically, what it means is to be more environmentally friendly. If you stop driving your Hummer and get a Toyota Prius, you will be eligible for auto insurance discounts. Hybrid car owners save up to 10% on their auto insurance costs… just ask your insurance agent about it.
12. Reduce Optional Insurance on Your Older Car
Older cars, and cars that remain garaged don’t necessarily need all that coverage. The most important vehicles to cover are the daily drivers, the cars you spend the most time in. If you have a collectible car that sits in the garage all day collecting dust, or a convertible that you only drive in the summer time, you might want to ask your insurance agent about seasonal insurance packages.
13. Monitor Your Teen
Become the James Bond of parents and spy on your kids behind the wheel. Many auto insurance companies now offer teen driver discounts if you install some type of tracking or camera in your vehicle to watch your teen’s every move. Some might call this invasion of privacy, I call it a good way to save money.
14. Get A Low Risk Job
Mentioning your “low risk occupation” to your insurance agent can save you a bundle. Teachers, accountants, librarians, and other “boring” professions can expect to pay the least. If you are sky diver, race car driver, or any other thing that requires you to live life on the wild side, I would probably keep that to yourself.
15. Pay your Insurance Upfront
You can save a lot of money by paying your insurance in full upfront. When you pay a monthly rate for insurance, you’re paying a small premium for the convenience. You can typically save $30 to $100 a year by paying your insurance in a lump sum, once a year. If you’re having trouble finding the cash, then just put your monthly insurance premiums into a separate account. By the end of the year, you’ll have more than enough for your one lump sum payment. Or, pay your insurance every six months.