The following auto insurance tips can greatly help you save money :
1. Raise your deductible.
The deductible is the amount of money you pay out of pocket beforeyour auto insurance company pays anything regarding any claim.
If you’re a safe driver and have not made a claim for several years,it’s still possible your insurance company has set your deductible to an unrealistically low figure, like $100 or $200. A lower deductible means you’ll pay a higher annual rate, regardless of whether you file aclaim our not.
A good rule of thumb is that if you have not filed a claim for a number of years, you might be better off by specifying a higher deductible, such as $500, and lowering your premium as a result.
2. Drop Collision or Comprehensive Coverage on Older Vehicles
Collision or Comprehensive coverage is typically not needed for older vehicles. These vehicles are typically beat-up, and in any case,you won’t get much from the insurance company in the event of the vehicle being totaled as a result of an accident.
If you’re willing to take small risk, and you’re a good driver, tell your car insurance company that you wish to drop collision or comprehensive coverage, and save some more money annually.
3. Buy a Low-Profile Car
Driving a low-profile vehicle is a good way to lower your premium, because car insurance is a game of numbers and statistics. If a car is more prone to being stolen, you can bet your insurance company knows about it.
A low-profile vehicle typically means that it won’t beas flashy or pretty, but in the long run, you’ll save some money on car insurance costs.
4. Drive Less
Unless you live in a very congested city, you probably won’t want to hear this piece of advice, but it will save you money. The number of miles you drive annually affects the cost of car insurance coverage, too.
Again, the insurance company see this from a risk point of view: the more time you spend driving, the more likely you are likely to have an accident.
Also, if you drive a lot, there are more chances for your vehicle to experience all kinds of problems. Talk to your insurance provider to see if you can get any distance discounts.
5. Location, Location, Location!
The location in which you live also determines how much you’ll pay for autoinsurance. To give an example, when I lived in the East Bay Area of California, my insurance costs were fairly low (based on location).
When I moved to Sacramento and informed my car insurance company of the change, my rates skyrocketed! I was moving from a small town (a population of about 50,000) to the capital of California. Keep this in mind and save big on car insurance.
6. Check your Car Insurance Company for Mistakes
Company records are not perfect, so double check with your auto insurance company for mistakes regarding your vehicle information.
For example, a four-door vehicle might be listed as a two-door car, or they might think your car is supercharged instead of the GT or SE version.
These “little” things matter, because you pay more for “highperformance!” Don’t let your car insurance company take more moneythan it deserves.
7. Check for Hidden Car Insurance Discounts
Check with your auto insurance company for hidden discounts. Some of thesediscounts include being a good driver, your occupation, abstinence from alcohol, having an anti-theft device, taking a defensive driving course, and tons more. If you don’t ask about them, your friendly insurance agent won’t necessarily tell you about them!