Car insurance is a fact of life and is required by law, in some form or another, in nearly every state. When you have auto insurance you are not only protecting yourself from having to pay someone else if you cause an accident, you are safeguarding your own assets in case someone else is at fault.
Here are some ideas to consider when you are trying to get those auto insurance rates down:
1. Drop Coverage That Is Unnecessary – If you have an older vehicle that is not worth too much it may be wise to drop the collision and comprehensive portion of your coverage. These are a significant portion of your premium. If you have enough money to cover the replacement cost of your vehicle in the bank, then it may make sense to drop the coverage and to keep your premium money.
2. Higher deductibles – A deductible is the amount you will have to pay out-of-pocket should you have to use your policy. By accepting a higher deductible, you can see a significant drop in your auto insurance premiums.
3. Take Advantage of Packages – Most insurers offer multiple-vehicle and multiple-policy discounts. So, if you are a renter or own a home, using the same company for your auto insurance and your home insurance should get you a discount on both.
4. Speaking of Discounts – Be sure you are taking advantage of all the discounts available to you. Most insurance companies offer the following:
- Multiple Vehicle
- Safe Driver
- Good Credit
- Good Student
- Certain Group Memberships
- Certain Employers
- Certain Occupations
- Vehicle Alarm Systems
- Paperless Statements
5. Clean Driving Record – Maintaining a clean driving record is one of the easiest ways to save on your car insurance rates. Insurance companies reward consumers who are safe drivers, who do not have a history of speeding tickets or other violations and are accident-free. Some companies are now forgiving a safe driver’s first accident and not raising their rates.
6. Compare Multiple Companies – As in all consumer products, rates vary. These days, with the many car insurance comparison internet sites, it’s easier than ever to get rate quotes from multiple companies for the same coverage options.
7. Choose Your Vehicle Wisely – You may not be able to change the vehicle that you are now driving but if you are thinking about purchasing a new vehicle, consider the costs of one type of vehicle versus another. Newer or sportier vehicles will carry higher insurance premiums.
Cost Saver Number Eight – Telematics
Telematics is a newer offering by some insurance companies and can be a way to save money on your insurance if you are a safe driver.
Basically, a car insurance telematics policy allows your insurance company to affix an electronic device to your vehicle which tracks such data as your speed when you drive and location. The data is fed back to the insurance company and can be used to adjust your rate.
Obviously, this system would be most beneficial to those that are truly safe drivers and who do not drive at peak times. But, if you feel that your rates are too high, telematics could save you money.
In addition, if your car is stolen, it can be easily tracked using the GPS feature!
Don’t Drop Your Insurance– Protect Yourself But Trim Costs
Though we all hate having to pay for insurance, car insurance is one type of insurance that you should always carry. The consequences of driving without insurance and of cancelling insurance are just too costly when you look at the big picture.
Instead, keep your family protected and take advantage of the many ways to keep your premiums more affordable. Take the time to perform a yearly review and avoid the inevitable creeping up of your car insurance premiums.