Car insurance is a necessary evil; we are required by law to have it, yet we hardly ever use it. Like all other bills, I have researched ways to save money on car insurance that actually work. Some of these options are well known and some are new. To be thorough, I have included the old and the new ways to save money on car insurance.
Multiple Line Discount - one can take advantage of deep discounts by insuring all cars, boats, homes, and apartments with one insurance company.
Update agent if recently laid off or work from home - Driving less miles per week, usually less than 100 per week can reduce your policy rate.
Safe Driving Discount - You might eligible for a discount if you have been free of accidents and tickets for several years.
Increase your deductible - A deductible increased from $250 to $500 can save a family hundreds of dollars a year. However, if you increase your deductible, make sure you have the extra $250 if you have to file a claim.
Shop around -- when your premium goes up, let your agent know you are looking; chances are they will find some other discounts.
Update agent if you are a parent under the age of 25 - You might receive the same rate reduction given at the age of 25. However, you will not receive another deduction once you turn 25.
Full coverage or liability - You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.
Get insurance quotes before you buy a vehicle and choose vehicle color - the type, model and color will affect you premium. If you don't want your premium to increase stay away from red sports cars. Also popular foreign models such as Toyota and Honda might have high premiums because they are stolen regularly.
Steer clear from short-term policies - You might receive a penalty for purchasing a short-term policy, go with long-term.
Avoid lapses in your insurance - If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.
Don't insure vehicles you don't drive - Take the old Chevy that you have been working on for years off your policy. However, some states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as inoperable" to avoid any complications or penalties.
Refresh your driving skills - Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.
Don't hit anything or get a ticket - Your fault or not, this can increase your policy rate for several years. Keep your eyes on the road. Avoid tickets. Speeding tickets and other moving violations can push your rates up substantially and these, like accidents, usually affect your insurance for 3-5 years.
Don't insure teenager driver with your car - Premiums for a teenager driver is through the roof. Instead, purchase a safe, used car and only purchase liability. You will save hundreds of dollars.
Keep your credit score high. Some insurance companies will charge people with low credit scores a higher premium because they are expected to file more insurance claims.
Pay semi-annually - This is my favorite way to save money on car insurance. Instead of paying your car insurance monthly, pay semi-annually. The 1st payment is the hardest because you will have to pay the full amount to cover the first six months; think ahead and start saving for this switch. Once you have paid your 1st six month premium, automatically transfer the monthly premium payment into a high yield savings account to earn interest until semi-annual payment is due. By doing this not only are you saving money by avoiding the monthly surcharge fee you are also making money off of interest.
Now all you have to do is call your insurance agent and start saving money on your car insurance.
Multiple Line Discount - one can take advantage of deep discounts by insuring all cars, boats, homes, and apartments with one insurance company.
Update agent if recently laid off or work from home - Driving less miles per week, usually less than 100 per week can reduce your policy rate.
Safe Driving Discount - You might eligible for a discount if you have been free of accidents and tickets for several years.
Increase your deductible - A deductible increased from $250 to $500 can save a family hundreds of dollars a year. However, if you increase your deductible, make sure you have the extra $250 if you have to file a claim.
Shop around -- when your premium goes up, let your agent know you are looking; chances are they will find some other discounts.
Update agent if you are a parent under the age of 25 - You might receive the same rate reduction given at the age of 25. However, you will not receive another deduction once you turn 25.
Full coverage or liability - You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.
Get insurance quotes before you buy a vehicle and choose vehicle color - the type, model and color will affect you premium. If you don't want your premium to increase stay away from red sports cars. Also popular foreign models such as Toyota and Honda might have high premiums because they are stolen regularly.
Steer clear from short-term policies - You might receive a penalty for purchasing a short-term policy, go with long-term.
Avoid lapses in your insurance - If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.
Don't insure vehicles you don't drive - Take the old Chevy that you have been working on for years off your policy. However, some states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as inoperable" to avoid any complications or penalties.
Refresh your driving skills - Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.
Don't hit anything or get a ticket - Your fault or not, this can increase your policy rate for several years. Keep your eyes on the road. Avoid tickets. Speeding tickets and other moving violations can push your rates up substantially and these, like accidents, usually affect your insurance for 3-5 years.
Don't insure teenager driver with your car - Premiums for a teenager driver is through the roof. Instead, purchase a safe, used car and only purchase liability. You will save hundreds of dollars.
Keep your credit score high. Some insurance companies will charge people with low credit scores a higher premium because they are expected to file more insurance claims.
Pay semi-annually - This is my favorite way to save money on car insurance. Instead of paying your car insurance monthly, pay semi-annually. The 1st payment is the hardest because you will have to pay the full amount to cover the first six months; think ahead and start saving for this switch. Once you have paid your 1st six month premium, automatically transfer the monthly premium payment into a high yield savings account to earn interest until semi-annual payment is due. By doing this not only are you saving money by avoiding the monthly surcharge fee you are also making money off of interest.
Now all you have to do is call your insurance agent and start saving money on your car insurance.
About the Author:
I am frugal by nature and am revealing how to save money for all who are interested. Check out this site if you are looking for ways to save money, easily reduce your grocery bills, monthly bills, and the benefits of budgeting. See you on the inside!!
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