Auto Insurance can be one of the large expenses you pay every month. It is worth it for you
to take a few minutes to lower that cost.
The first thing to do is shop around for
better rates. If it’s been a couple of years since
you got you car insurance policy, you may be able to find a better deal.
One simple way to do this is to visit a comparison site that
will compare rates for you and let you know how much different companies are charging.
Or you can go to individual companies such as:
Either way it doesn’t cost you anything to
check it out, and you aren’t obligated to buy anything.
Another way to save money on
your car insurance is to make some adjustments to your current policy.
Raise your deductible
If you have a $100, or $250 deductible, I would suggest that you raise
your deductible to $500. When you raise your deductible, you will lower your monthly payment. The
insurance companies will know that you are likely to present fewer claims if each claim has to be
for a higher amount before they pay you anything. Take the money that you are saving each month
and put it in savings. It won’t take you long to have saved the difference in the deductible.
So, you will have a deductible that is $250 higher, but you will have an extra $250 sitting in
Drop collision coverage on older cars
Collision coverage means that the insurance company will pay you for
damages to your car. If you have an older car, then it is really not worth it. If your car was
totalled, they would pay you your cars current value. It might be worth it to go to Kelly Blue Book
and see what they value your car at. If your car is only worth $1,500, then the insurance
company will subtract the deductible
and give you a check for $1,000. This may be costing you an extra $100 per month. It just doesn’t
add up for an older car.
Track your use
Insurance companies will charge you less, if you drive your car less. It
makes sense. The less you drive, the less likely you will be in an accident. So track how much
you drive and let your insurance company know. If you are driving less than 10,000 miles per
year you will probably get a discount. Also, if you have more than one car, tell them that your
oldest car is your primary vehicle. This will give you a larger discount on the car with the
most expensive rate.
First, it’s not worth risking your life and endangering the lives of others
just to get home a couple of minutes earlier. Second, the more moving violations you have,
the more expensive your insurance will be. Just plan ahead, and leave a little earlier.
You will get there less stressed, and with more money in your pocket.