Auto Insurance Savings Tips
Saving money on auto insurance doesn’t have to be difficult. There are a number of ways to save money on car insurance without wasting a lot of time. There are three basic ways you can save money when shopping for auto insurance.
First, look for ways to save money based on good driving habits or qualifying for discounts offered by many insurance companies. These days car insurance companies offer discounts for a wide variety of “good behaviors.” Home owners get may get discounts, as may those who have renters insurance through the same company. Teens may get good grade discounts, and drivers of any age may get discounts through attending defensive driving courses.
Ask your insurance companies about discounts if you don’t use your car for commuting or if you drive less than 14,000 miles per year. Air bags, anti-lock brakes, and theft deterrent systems can also help reduce your insurance rates. You can even save money when you buy a car by asking if there is a difference in rates between the various models you are considering.
Second, look at your coverage. Of course, you want to be fully covered in case of an accident – but you can save money by making sure you are not overinsured. Keep your deductible as high as you can afford in order to keep your insurance rates low. A $200 deductible will cost you more every month than a $500 or $1,000 deductible. Insuring an older car for comprehensive coverage may not be worth it – since the payout in case of an accident will be very low on older cars. Be sure that your coverage meets the state minimums where you live – but be careful that if you have insurance that exceeds the minimums it is in areas such as bodily injury where it can be a real help to you.
Finally, be sure to shop around. Looking around for car insurance can really save you money. I was very surprised when I switched insurance companies for the first time to learn that I could save $400 a month by going with a company that was NOT advertising on TV every 5 minutes. You can save a huge amount of time by using a car insurance quote service online instead of calling around or checking with each insurance company individually. You may even get lucky and find that a lesser known but still solid insurance company offers you a bigger discount with great coverage.