Auto Insurance can be one of the largest expenses you pay every month. It is important to have car insurance, but follow these tips to make sure that you are getting the best deal for your money.
Compare Insurance Rates
The first thing to do is shop around for better rates. If it’s been a couple of years since you got you car insurance policy, you may be able to find a better deal. One simple way to do this is to visit a comparison site that will compare rates for you and let you know how much different companies are charging. Or you can go to individual company websites.
Either way it doesn’t cost you anything to check it out, and you aren’t obligated to buy anything. If you are going to call, or visit insurance company websites, be prepared. Get a copy of your current information. They will ask for information about your vehicles, your deductible, and whether you want comprehensive insurance. If you have your current information in front of you, it will be easy to compare insurance rates.
Another way to save money on your car insurance is to make some adjustments to your current policy.
Raise your deductible
If you have a $100, or $250 deductible, I would suggest that you raise your deductible to $500. When you raise your deductible, you will lower your monthly payment. The insurance companies will know that you are likely to present fewer claims if each claim has to be for a higher amount before they pay you anything. Take the money that you are saving each month and put it in savings. It won’t take you long to have saved the difference in the deductible. So, you will have a deductible that is $250 higher, but you will have an extra $250 sitting in the bank.
Drop collision coverage on older cars
Collision coverage means that the insurance company will pay you for damages to your car. If you have an older car, then it is really not worth it. If your car was totalled, they would pay you your cars current value. It might be worth it to go to Kelly Blue Book and see what they value your car at. If your car is only worth $1,500, then the insurance company will subtract the deductible and give you a check for $1,000. This may be costing you an extra $100 per month. It just doesn’t add up for an older car.
Track your use
Insurance companies will charge you less, if you drive your car less. It makes sense. The less you drive, the less likely you will be in an accident. So track how much you drive and let your insurance company know. If you are driving less than 10,000 miles per year you will probably get a discount. Also, if you have more than one car, tell them that your oldest car is your primary vehicle. This will give you a larger discount on the car with the most expensive rate.
First, it’s not worth risking your life and endangering the lives of others just to get home a couple of minutes earlier. Second, the more moving violations you have, the more expensive your insurance will be. Just plan ahead, and leave a little earlier. You will get there less stressed, and with more money in your pocket.