TwitterIf you are like the average person in America, you are paying around $817 per year in auto insurance, according to the Insurance Information Institute. As the country struggles through an economic recession, millions are either out of work, looking to save money, or both. The good news is that there are many ways to reduce car insurance premiums.
Keep these 10 tips in mind on ways you can find lower rates.
1. Shop around. How long has it been since you compared rates? Doing so every six months should help ensure you are getting the best rate for the coverage.
2. Consider deductibles. Rates will vary depending upon on how much coverage is being offered. Taking a higher deductible may provide significant savings. It's worth getting quotes so you can consider it. Think about this, you probably won't claim insurance if you're car looses 400 worth of CDs. However, Your entire windshield and your sound system will cost upwards of 1500. Increasing your deductible for what you wouldn't even claim to begin with will save you money in the long run.
3. Go umbrella. Many insurance providers offer discounts if you put all insurance plans with them, including cars, home insurance, boats, etc. Consolidate your insurance in one place if it gives you the best rate.
4. Get A's. If you are a good student, or have a teen driver who is one, you can save money. Most insurance companies that provide these good student driver discounts look at the driving record as well as school records.
5. Drive less. If you put fewer miles on your car per year you will save on insurance premiums, as well as gas money. Consider carpooling, riding a bike, or taking public transportation. Some states like California are even considering a pay-per-mile insurance system. See number 9 for more info on driving less savings.
6. Ask more. One of the reasons people don't save on their insurance rates is because they don't ask for discounts. Always ask your provider what you can do to lower your rate and what type of discounts you may qualify for.
7. Always inform. It is important to inform your insurance provider if you have any changes in your situation, such as you are now driving less, you have moved, etc. The changes may help give you a lower rate.
8. Driver cheaper. While we all like our big vehicles and sports cars, it may not be the most ideal thing to have when you are trying to save money on your cheap car insurance. You may want to consider making a switch to a vehicle that is cheaper to insure. Always get quotes before making the change, in order to confirm this will be the case.
9. Move closer, change habits. If you have a long commute to your job it is costing you not just gas but higher insurance premiums as well. It is also putting you at higher risks for accidents which will lead to higher rates. Consider moving closer to your work, or getting a job closer to your home to cut down on the commute time.
If you do move closer, and you drive less frequently, it's important to let your insurance know you're a casual driver now. That will certainly save you hundreds a year.
10. Drive safe. Keeping your driving record clean is one of the most effective ways to help lower your insurance rates. If you are a good driver and avoid getting citations, you will be rewarded.
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Comments ( 2 )
This is very helpful information. You can do much better if you've got a clean record right from the beginning but that's hardly ever the case in auto insurance. Deductibles are many times looked over by many of us too. We should not hesitate to ask for more at all. Remember that there is a lot of competition in the insurance industry and markets are competing to find you!
On your first point shop around, this is the key I think. But how you shop around is important. For example I think you need to not just use the internet but also, ask friends. For me this is the best and most trusted way to buy insurance as, sometimes, the lowest rate is not the best deal if you consider other factors like customer satisfaction.