Tips On How You Can Save On Auto Insurance
Ask for Annual Rate Requote
Even if you’ve been with the same insurer a long time, their rates may be hard to beat. But what we’ve come to find out that most bigger insurance brokers or companies will not offer to requote you unless you actually ask for it. What’s more interesting is that most consumers believe that their current company may already be providing the best rates if they stick with one company for a long time especially if there aren't any claims in their policy. In fact, a 2014 survey by the Consumer Reports National Research Center found that only 10 percent of 19,000 ConsumerReports.org subscribers who compared premiums found that they would save money by switching insurers.
Consider forming a relationship with an independent agent, who will check rates for you at a range of carriers.
Pick a Top-Rated Insurance Company
Saving money isn’t simply a matter of finding the lowest premium. Some insurers have lower premiums, but end up costing you more in the end by lowballing loss estimates, hassling the repair shop to cut corners, and forcing you to pay extra for original-equipment replacement parts. They might even unfairly jack up your premiums after an accident.
Know and Choose the Right Deductible
A higher deductible reduces your premium because you pay more out of pocket if you have a claim. Hiking your deductible from $200 to $500 can cut your premium on collision by 15 to 30 percent. Go to $1,000 and you could save 40 percent. If you have a good driving record and haven’t had an at-fault accident in years, if ever, opting for a higher deductible on collision might be a good bet. Just make sure you can afford to pay that cost if your luck runs out.
Have your Agent Explain All of Your Coverages
Your liability coverage pays for bodily injury and property damage that you cause in accidents. Don’t get caught short by reducing your liability limits to the state minimums. Buying more coverage might seem like an odd way to save, but the benefit comes if you have a costly claim, which can put your life’s savings at risk.
If you have another car that you can use while your vehicle is being you don’t need to pay for rental-reimbursement coverage. Dump roadside assistance if you have an auto-club membership that’s a better deal, or if it’s part of your new car’s warranty.
Think carefully about personal-injury protection and medical-payments coverage: Forget it if you have good health coverage; keep it if you don’t or if your usual passengers might not be well insured.
Ask for Discounts
Car insurers offer a whole range of modest but worthwhile discounts that are essentially based on a low-risk lifestyle. Here are some to ask your insurer about if they don’t mention them to you first:
- Students with good grades.
- New drivers who have taken a driver-training course.
- Older drivers who have taken a refresher course.
- Any driver who takes a defensive-driving course.
- Members of affinity groups, such as college alumni and certain occupations and professions.
- Anti-theft and safety equipment.
Insurers also offer fairly hefty auto discounts if you also buy your homeowners, renters, or life-insurance policy from them. But be sure you check out total costs both ways: premiums from different insurers compared with single-insurer packages.
Youthful driver Risk
Adding a teenager to your policy can hike your costs by 50 to 100 percent. Make sure your child takes a safe-driving course before getting a license. Rates begin to drop after the age of 25.
Maintain a Good Credit Score
Most states allow insurance companies to use your credit score can be a huge a factor in setting your premiums. Ask your insurance company if it does that. But regularly check and correct your credit for errors anyhow.