Every driver needs car insurance but buying it can be expensive. Today, a car insurance covers many things like medical costs and repair costs etc. While we cannot do away with these things; we can certainly shop smarter and save tons of money on them. Today we will be discussing 15 easy ways to save money on car insurance:
1. Enlist the help of an insurance agent
An insurance agent or a broker works for you and not for the car insurance companies. They have in-depth knowledge and experience and can help recommend a coverage that is suitable for you. This is the easiest way to save on auto insurance.
2. Start insurance shopping even before you buy a car
Before you purchase a car, you need to start thinking about the type of coverage the car will need and how much it will cost you. Some models are more expensive to cover than others, so talk to your agent about it even before purchasing the car.
3. Know what coverage you need
A bit of homework is very important to ensure that you do not overpay on your car insurance. Find out what types of coverage you need and how much of each type is necessary. Once you have done this basic homework, get quotes from multiple companies. You can do so by contacting your insurance agent or directly contacting the insurance companies.
4. Don’t buy from the first company you get a quote from
Car insurance rates vary drastically from company to company. It is vital that you call multiple companies and get quotes from several vendors. Next, compare prices and coverage types too. This is the number one trick to lower car insurance.
5. Maintain a clean driving record
Safe drivers with claim free records can save tons of money on their car insurance premium each year. So drive safely and speak to your broker to help you get the best insurance discounts when renewing your insurance.
6. Use online insurance comparison tools
Use this online government tool which gives you an idea of insurance premiums based on seven different profiles, each with varying coverage and driving experience. This will help you answer common queries you get when shopping for auto insurance such as ‘what is the average amount paid for auto insurance in the United States’ and also ‘how to save money on car insurance for under 25 drivers’ etc.
7. Buy all your policies from same company
If you have home insurance, auto insurance and health insurance from different companies, then chances are that you are overspending on all these premiums. One of the most important of all auto insurance money saving tricks is to buy different policies from the same company to get a bundle discount. You can also insure all your vehicles including vans, boats, motorcycles etc with the same provider. Also talk to your broker about compounding your savings by insuring home owner insurance, condo insurance or tenant/rental insurance etc from the same company.
8. Take driver education course
This is an easy trick to lower car insurance rates. You only need to invest in a qualified and accredited course to become a safer driver. This will lower your monthly premium, make you a better driver and also the savings you make on lower premiums will pay for the cost of the course in no time.
9. Keep your car safe with anti-theft systems
Talk to your insurance agent about the use of safety devices that not only guarantee your peace of mind but also qualify you for lower premium. Air bags, anti theft devices, steering wheel locks, anti lock brakes etc can all qualify for discounts.
10. Increase deductible
The higher the deductible amount you pay, the lower will be your insurance rates. This is an important fact you ought to know in order to save on car insurance.
11. Cancel collision coverage for old car
If you are driving an older vehicle, you can save tons of money by foregoing the car collision coverage. This is a significant amount you can save.
12. Avoid driving to work!
The higher the commute, the greater will be your premium. On an average, people clock 1000 to 1250 miles on the annual commute. If yours is lesser than this, then you can seek low-mileage discount and save on car insurance. Thus, an easy way of saving money on auto insurance premium amounts is to take mass transit and rarely drive to work.
13. Move to a low cost area
If you are planning on moving your residence soon, consider the auto insurance rates of the area first. Costs vary from state to state, city to city and even within the community. Your broker can guide you in these matters.
14. Have better credit history
You may be eligible for some more discounts if your credit history is good. So do shop around for better prices each year. Also regularly update your credit status and talk to an agent about this when shopping for car insurance.
15. Stay in touch with your agent
Call you insurance agent from time to time. Ask them if they can lower your rates as they are in the know and have access to discount programs that come up from time to time. Many times, the agent may have a placement with another company which can get him/her to offer you lower rates. Often it happens that when you do not call the agent, they assume you are okay paying what you are. So call them from time to time and ask for lower rates.
These 15 easy ways will definitely help you save tons of money on car insurance.
