Everybody likes to save money, particularly these days. But sometimes, simply saving money isn’t enough, you have to be smart and frugal. Car insurance is one area where everyone would love to save a little cash, but it’s all to easy to sacrifice quality insurance for savings. You need to be sure you are getting the coverage you need, and that your insurance company offers the support and service you demand. Saving money on cart insurance can seem like a tall order, but there are ways to reduce the cost of your auto insurance and still enjoy the coverage and service you need.
Many people fail to consider their insurance needs until after they have purchased a vehicle, and this can lead to unexpectedly large premiums. The cost of insurance is in direct proportion to the age and model of the vehicle you own, so it is important to consider the cost of insurance before you buy a new car or truck. The price of your new vehicle, as well as its safety record and estimated maintenance costs, can have a direct impact on the size of your insurance premiums. Do your homework ahead of time, and figure your insurance costs into the total cost of your new vehicle.
Compare Insurance Companies
When it comes to car insurance, comparison shopping is a must. Insurance costs can vary widely between insurers, and it is important to get a few quotes before deciding on a company. Do some research online, and ask friends and co-workers for suggestions. Remember, while price is a primary consideration you also want to be certain that the company you choose has a solid reputation. Sometimes it is better to spend a little more money on your premium in exchange for the piece of mind that comes from signing on with a reputable firm.
Bundle All of Your Insurance Policies with One Carrier
Many insurance companies offer multi-policy discounts for their preferred customers. Insuring your home and your vehicle with the same company can often yield real savings over the life of your policies. Similarly, insuring all of the family vehicles, or all of the family drivers, with one carrier can result in considerable savings. When comparing insurance companies, ask about any family plans or multi-policy discounts that may be available.
Keep a Safe Driving Record
People with safe driving records typically enjoy greater savings on their car insurance policies. If you have a history of accidents, or traffic violations, it will greatly increase your premiums. Some insurance companies also offer additional discounts for drivers who have taken, and passed, a defensive driving course.
Increase Your Deductible
Increasing your deductible can significantly lower your auto insurance premiums. Now, having said that, it will also mean that you have to pay more out of pocket if you are involved in an accident. Also, if your car is new or you still owe a considerable amount on your auto loan this option may not be available to you. Still, increasing your deductible by a few hundred dollars can save you between 15% and 30% on the cost of your collision and comprehensive coverage.
Saving money on car insurance isn’t difficult, it just requires a little thought and a bit of comparison shopping. If you have a good driving record, and a solid credit history, you may be able to save more than you think on your auto insurance premiums. The money you save can be put to good use paying of your existing auto loan, or saving up for a down payment on a new vehicle.