Sure, we all know a few good ways to knock some bucks off of your car insurance. Me? I am contemplating getting rid of my car altogether since I work at home and can walk to most anything I could need within a few blocks. But for those that are keeping your wheels, this article from Monster might offer a few suggestions to save a little bit of cash.
Even though auto insurance is expensive — on average $870 annually per car — many people purchase policies with little or no research. But insurance premiums (the payments you make to purchase coverage) can vary by as much as 300 percent, depending on the company you choose.
**I just switched to a different insurer, and our cost went down significantly, even with a lower deductible. It pays to look around!**
– Raise the Deductibles: One way to save money is to take the highest deductibles on collision and comprehensive coverage you can afford. A higher deductible means lower premiums.
– Choose a Car That Costs Less to Insure: Buying a low-profile car — one that’s rarely stolen and inexpensive to repair — can help cut insurance costs. Research the cost of insurance before buying a car. Sports cars, for instance, are very expensive to insure, while the least costly cars are small and midsized sedans and minivans.
– Cancel Collision Coverage When Away: If you won’t be driving for a long period of time, such as more than 30 days, you should notify your insurance company. Sometimes it’s possible to cancel collision premiums for this period of time.
– Insure Teenage Drivers on Your Family Policy Rather Than Separate Ones: Doing so will usually save money. Explore discounts for teenagers who have a good academic record, have successfully passed a driver training course or who don’t smoke.
– If You’re in the Military, Explore Special Discounts: Visit USAA’s Web site for more information.
– Find Out If Your Employer Gets Preferred Rates Through a Group Plan.
– Use Public Transportation: This can save you money on your policy.
– If You Are an Older Driver, Investigate Senior Discount Rates: The AARP is one such organization that offers discounts on auto insurance.
– Collision Coverage on Your Auto Can Transfer to Rental Cars: People who rent cars frequently may want to purchase a nonowner liability policy for about $300 a year rather than pay for the expensive collision-damage coverage each time they rent a car.
**And here is the normal “ask for a discount” spiel….no doubt, if you don’t ask, you won’t receive.
– Good Driving Record: Generally, a clean record — no accidents or moving violations for the past three years — will result in lower premiums.
– Drivers over 55 Who Have Taken a Recent Driving Course.
– Carpool Drivers: Drivers who carpool to work sometimes receive a 10 percent to 20 percent discount on premiums.
– More Than One Car on the Same Policy: This may earn you a 15 percent to 20 percent discount.
– Low Annual Mileage: Some companies offer discounts if you drive less than a certain number of miles each year.
– College Students Away at School: Some insurers offer discounts to parents with a college-age student who attends school more than 100 miles from home and doesn’t keep a car on campus.
– Antitheft Devices: Some insurers offer 5 percent to 15 percent discounts for alarm systems, wheel locks, hood locks and ignition protection devices.
– Safety Devices: You may receive up to a 30 percent discount in medical coverage for automatic seat belts and air bags. Some states, such as Florida, New Jersey and New York, require insurers to give discounts for cars equipped with antilock brakes.
– Being a Nonsmoker: Smoking is considered a high-risk behavior. Nonsmoking drivers may receive discounts on liability, medical benefits and collision.
– Long-Time Customers: Although it’s wise to comparison-shop, it doesn’t always make sense to switch companies. Some insurers reward long-time customers with discounts and other money-saving programs.
– Insuring Your Vehicle with the Same Carrier You Use for Homeowner’s Insurance.
You should ALWAYS shop around….every ad on tv says that their rates are lower than their competitors…well, they can’t all be the lowest. Start calling around, thats how we saved a bunch by going with a company that only insures good drivers. That way my premium doesn’t have to be so high as to pay for all the bad drivers the company doesn’t cover!