Many people ask me how they can save money on their auto insurance. Lets face it, its a necessary expense that we all would love pay as little as possible on. What I want to do in this article is offer you just a few tips on saving money on your auto insurance.
Before I go into this I want to help you have a realistic view on what you are looking at. Your insurance premiums are definitely going to be influenced simply by who you are. For example all insurance companies look into certain things such as your age, sex, and definitely your driving record. If you are a male under 25 years of age your premiums are always going to be higher than female who is over 30 unless her driving record is terrible. Now that we got that out of the way, here are 3 tips to lowering your insurance premiums.
The first way is a way that I’m going to suggest is simply raising your deductible. This option is better for some drivers than others. For example if you are a person who can afford to pay a $1000 deductible and you are a fairly safe driver, why pay an increase in premium to have a lower deductible if it will not effect you one way or another. If you have an accident that has $700 in damages and you have a $500 deductible the insurance company will be paying for $200 on that claim and you will be paying the other $500. If your deductible is $1000 you will only be paying $200 more anyway. You will probably have already saved that much on premiums depending on how long you have had your current coverage anyway. Once again this option is certainly not for everyone. In many cases the lower deductible is better suited. I will make the suggestion though that anything under $500 is not necessary for the simple fact that if you make a $250 claim on your insurance because you have a $100 deductible you are probably going to have increased rates with that company and any other company you decide to switch to for something you probably could have paid for yourself.
Another way to save money on your auto insurance is to buy safe vehicles. If you have vehicles that are known for their safety ratings and have things like airbags and anti lock brakes your insurance premiums reflect that as well. So even when you are shopping for your vehicle you have the potential to save yourself some money on your insurance rates. Although most things are coming standard in vehicles now, some cars will still have more reduced rates than others. A mini van is likely to get a better rating class than a corvette. I think you get the point on this tip.
The last way that I will suggest to you won’t work for everyone because some people have loans on their vehicles still and all lien holders are pretty serious about us having full coverage insurance on our vehicles while they are still holding the paper on them. But for the vehicles that you have on your policy that are completely paid for you can drop your collision and comprehensive coverage to save yourself some money. I would never suggest in a big city to drop your uninsured/underinsured motorist coverage though. But if your vehicles value has diminished and your deductible is getting to the point where it’s about the same cost as what the car is worth it probably isn’t worth paying for full coverage on it anymore.