Save Money On Car Insurance Right Now!
Many people have a love-hate relationship with car insurance; you hate to receive a bill for something you hardly use, but you love it after an unfortunate accident (if you can afford the deductible). Listed below are tried and true steps that anyone can take to reduce their car insurance premiums.
Multi-Line Discount – a family can save a lot of money by simply putting all cars, motorcycles, homes, and apartments under one insurance provider.
Limit Your Driving – If you work from home or were recently laid off, tell your agent. Many companies will reduce your premium if you drive less than 100 miles per week (varies by insurance agency).
Safe Driving Discount – You might eligible for a discount if you have been free of accidents and tickets for several years.
Raise your deductible – A bump up in the deductible will allow you to keep hundreds of dollars in your pocket. Over several years of being accident-free, that savings quickly adds up.
Comparison shop – Let your agent know that you are looking at other agencies to reduce your monthly premium; it is likely the agent will pull some strings to keep you as a customer. Caution: if you find a better deal, confirm that it is not an introductory price. Many times your premium will increase to what you were paying with your previous insurance agent.
Under 25 parent discount – At the age of 25, car insurance premiums decrease because insurance companies feel the driver is now more experienced. However, parents under the age of 25, will also receive this discount because the insurance companies feel a parent is more responsible. Note: you will not receive another reduction once you turn 25.
Full coverage or liability – You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.
Talk to your agent before buying a new car – The shiny red sports car and the gadget filled luxury car might look good on the dealership floor, but the premiums might cost an arm and a leg. Check prices with your insurance agent to help you make the best decision.
Avoid short-term policies – Penalties are often applied, think long-term
Avoid lapses in your insurance – If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.
Only insure cars that you drive – The old Ford that has not been driven in years should not be insured. However, depending on the state you live in, all registered vehicles must be insured. To avoid any problems make sure you register any non-working vehicles as ‘inoperable’.
Refresh your driving skills – Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.
Avoid accidents and tickets – Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 3-5 years.
Don’t insure teenager driver with your car – Premiums for a teenager driver is through the roof. Instead, purchase a safe, used car and only purchase liability. You will save hundreds of dollars.
Keep your credit score high. Some insurance companies will charge people with low credit scores a higher premium because they are expected to file more insurance claims.
Don’t pay your premiums monthly – I love this money saving tip! Avoid the monthly surcharge fee by paying for your premium semi-annually. Start saving to make the 1st semi-annual payment. Once that payment is made, automatically transfer the amount you would pay into a high-yield savings account to earn interest. When your semi-annual payment is due, withdraw the needed amount from you saving account. The interest you earned is now free money.
Happy Savings!!
