Save Money On Car Insurance Today
Car insurance is a necessary evil; we are required by law to have it, yet we hardly ever use it. Like all other bills, I have researched ways to save money on car insurance that actually work. Some of these options are well known and some are new. To be thorough, I have included the old and the new ways to save money on car insurance.
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).
Discount for Safe Driver – You might be eligible for a rate reduction if you have not been in an accident or received a ticket 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 – An insurance company will not spend more money repairing a car than it is worth. Therefore, check the value of your car using Kelley Blue Book and determine whether full coverage if still needed or if it is best to switch 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.
Steer clear from short-term policies – You might receive a penalty for purchasing a short-term policy, go with 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 – 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.
Insure teenager under different car – The cost to insure a teenage driver is insane. If you have the money, purchase a used car for your teenager and only purchase liability; the amount you save will shock you and your teenager will be happy with his/her own car.
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.
Pay semi-annually – This is my favorite!! A surcharge fee is generally applied to customers who pay monthly. This fee is easily avoided by paying semi-annually. Begin to save up enough money to make the 1st semi-annual payment. After you make that payment, automatically transfer the monthly insurance payment into a high-yield savings account to earn interest. When you receive your semi-annual bill, pull money from your high-yield savings account to cover your premium cost. Any money earned from interest is profit.
Happy Savings!!
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Tags: Affordable Insurance, car insurance, finance, lower your car insurance premium, money saving tips, personal finance, save money, save money on car insurance, saving money
Thanks for posting about this, I would love to read more about this topic.