8 Ways of Saving Money on Auto Insurance
Everybody hates it, but we all have to do it. We have to shop around and find some car insurance. There’s no way of avoiding this task, so we might as well try to learn some ways of saving money during this process. Here are tips for ensuring your don’t overpay for your own car insurance:
1. Excess – When you have ‘excess’ on your policy, it means how much you have to pay on a claim before the insurer takes over and pays the rest. When you choose having a higher than standard level of excess, it usually means you get lower premiums.
2. If your vehicle is an older model, the think about ‘liability only’ insurance for it. When you consider this move, think about the value your vehicle holds as compared to what you pay on your premiums. If the vehicle has a wholesale value of $1,000, then why would you pay that much yearly for insurance when that’s all you’d get from the insurance should you total that vehicle?
3. Regularly Search For Quotes – A lot of people just keep on paying their same premiums for years, never taking the time to shop for better rates. As a vehicle ages, it depreciates. So why pay the same premium for an old car as you would a new one? The best thing to do is search for quotes year to year. The more often you do it, the more likely you are to save some money.
4. Increase The Deductible – The higher your deductible, the lower your premiums. So set the deductible at a rate that is the highest possible. Just be sure if you should need your insurance, that you could cover the deductible.
5. If you carry home, boat, fire, and life insurance, or any other types of policies, then combine them all together with the same company and get yourself a discount on premiums.
6. Defensive Driving Courses – One little six hour course on defensive driving can save as much as 10% of your premiums. Just get in touch with your local DMV and get some information of how to take the course. Sometimes you can do it by mail or video, or maybe online.
7. Think Like Insurance Agents Think – Your insurance agencies will base rates on one major factor, and that is risk. The more risk you bring, the higher your premiums will be.
8. Keep Your Credit Good – Your insurance company is just like other businesses, they want to be paid, and paid on time. So keeping a good credit rating carries a lot of weight with them. It can get you lower premiums.
Whenever you’re talking to an agent, provide them with reasons you should be less of a risk. Point out your clean driving record, the safety equipment on the vehicle, the garage parking, security equipment installed, and anything else that they consider when giving out discounts. Make a list before speaking with them and be ready. It also doesn’t hurt to be a bit creative! So confront them with all the reasons why you are not as much of a risk as they are making your out to be, and you’ll probable get a cut on your premiums.