Ways of saving money
The car insurance price you pay can differ considerably depending on the company you buy auto insurance from and the type of car you're driving.
This is how you can save money on car insurance.
Consider your options
Shop around because the prices vary considerably between companies. Quote for a price at least three times. There are many ways to contact car insurance companies – by phone, mail or the Internet. You can also get valuable information from your state insurance department, which can provide you with the prices from top auto insurance companies working in your state.
Quote for prices form various types of insurers. Some insurance companies have their own agents, which work by the same name as the company. Some insurance companies provide their policies through independent agencies, which work with several businesses. There are also companies that don't work with intermediaries and provide their car insurance services directly to the consumer.
But price is not the only thing to consider. Reliable customer support is also very important. See which companies your close persons can recommend. You can also get information on consumer complaints regarding insurance companies from your state insurance department.
Independent rating companies and special magazines can be a source of information on the insurance company's financial situation.
It is important that an insurance company or agent is able to address all of your questions in a professional manner. After all, they will be the ones that you'll have to deal with in case of emergency.
Compare auto insurance costs prior buying a car
Before buying a car, new or used, be sure to check car insurance prices. The insurance premium is calculated basing on the car's price, its repair cost, overall safety record, and the likelihood of this particular model's theft. The majority of insurance companies provide the customers with discounts that lower theft and injury risks. They involve anti-theft devices, air nags, anti-lock brakes etc. In some states the legislation imposes car insurance companies to provide discounts if the car has anti-lock brakes or air-bags.
If the car is very popular among car thieves the cost of its insurance will be much higher. Insurance Institute for Highway can help you with the decision on which car to buy.
Opt for larger deductibles
Deductibles are the money you have to pay before your car insurance policy takes force. The higher deductible, the lower your insurance costs will be. In case you increase your deductible from $200 to $500, your collision and comprehensive coverage costs will decrease by 15-30 percent. And if you go to a $1,000 deductible, there will be a saving of 40 percent or more.
Lower the coverage with older cars
In case of older cars it is recommended to reduce collision and/or comprehensive coverage. If your car is worth less than 10 times the coverage sum it would be ineffective cost-wise. In that case your premium minus the deductible will not be exceeded substantially by the claim payment. The likelihood of claim occurrence is one for every 11 or 12 years. You can get information on car prices from car insurance companies, banks or look it up in the Internet. It's also recommended that you adjust your coverage your insurance needs at renewal time.
Get your homeowners and car insurance from the same insurance company
Major insurance companies will offer a discount if you buy different insurance services from the same company. There is also likely to be a discount if you get car insurance for more than one vehicle from the same insurer. If you are a long-time costumer some insurance service renders will also offer a discount. But be sure to compare the advantages you can get from different insurers – sometimes you can get a cheaper car insurance without the discounts.
Use low-mileage discounts
In some cases you can get a discount from an auto insurance companies if you drive less than the average yearly mileage. Such discount can also be offered to those using carpools.
Opt for group insurance
There are special discounts with some insurance companies in case you contact them through a special group or professional association. You can get information on possible car insurance reductions from your employer or a group you make part of.
Good credit rating will help
Your auto insurance costs may be influenced by your personal credit history, so be sure to keep track of it. A good credit rating will make car insurance costs more fair and accurate. Depending on the state or the insurance company there may be different extents of credit history involvement, but fact is that drivers with a stable credit history are less likely to end up with an accident compared to others. You can search the Internet for tips on how to make your credit score better or check your current rating.
Get a safe driver discount
You may get a discount from a car insurance company in case you haven't been involved in a car accident for a certain period of time. A defensive driving course could also give you the possibility to opt for a discount. Read: Mortgage Basic Knowledge That You Should Know
Get all the information on possible discounts
There are possible discounts depending on your age, or if the younger driver listed on the insurance policy is a good student. The possibilities vary from state to state.
When considering options, ask about the following discounts:
- $500 deductible
- $1,000 deductible
- More than 1 car
- No accidents in 3 years
- No moving violations in 3 years
- Drivers over 50-55 years of age
- Driver training course
- Defensive driving course
- Anti-theft device
- Low annual mileage
- Air bag
- Anti-lock brakes
- Daytime running lights
- Student drivers with good grades
- Auto and homeowners coverage with the same company
- College students away from home
- Long-time customer
- Other discounts
*In some states or companies the list of available discounts will vary.
But don't be tricked by discounts and reductions. With some companies the final price for a car insurance may be lower than that of another company with all the discount it offers.