SAVE A HUGE CHUNK OF MONEY ON YOUR AUTO INSURANCE JUST FOR DOING THESE SIMPLE THINGS!
Auto insurance is a necessary expense for every vehicle owner. I would rather park my car and walk than to drive without being covered by auto insurance. If you have a car or truck, motorcycle, or even an RV, you need insurance. It’s my goal today to help you save money on your auto insurance.
The costs can vary widely not only from company to company, but from person to person. Some of what you are paying depends on how you, the consumer, use your vehicle and live your life .
- One of the best ways to lower your auto insurance rates is to RAISE your deductible. My advice when doing this is to first make sure you have the deductible amount already saved, so that should you get into an accident, you will have the cash to pay your deductible. Instead of setting your deductible at $250.00, save $1000.00 in a bank account, and raise that deductible to $1000.00. According to CarInsurance.com, you can save anywhere from 5.4% in Florida, to up to 17.8% in Nevada simply by switching from a $250 deductible to a $1000 deductible. Check the potential savings using their handy chart at the bottom of their page.
- The fewer miles you drive each year, the lower your auto insurance rates may be. Your insurance rate may be cheaper on a “pleasure” car, that is, a car you don’t use to drive to and from work, or for any business travel, than on a car you drive daily. Make sure you let your insurance agent know what your intended use of your car will be.
- If you are an older driver, and take an adult driver’s safety course, you may receive a discount. Even if you don’t, it’s a good idea to take the course. Ask your insurance agent if their company offers this discount.
- Teen drivers who maintain at least a 3.0 GPA in high school may qualify for a lower rate than those who have a lower GPA, and those who take a driver’s safety course may qualify for a discount.
- Bundling your auto insurance policy with your homeowner’s policy can save you a good chunk of change. Find out from your insurance agent just how much of a discount you would qualify for, and don’t be afraid to shop around if they don’t give you a great deal. Don’t let loyalty to one agent get in the way of saving money. This isn’t personal; it’s business, to both you and the agent.
- Some insurance companies will give you an “advanced” or “early” quote discount, meaning if you get a quote BEFORE your current policy expires, you may receive a discount. You can save by as much as 10% at some companies, so it pays to shop early for insurance.
- Before your buy your next car, call your agent and find out what the difference in rates would be if you insure one car model versus a different car model. You may just be surprised at how varied the quotes can be.
- Insurance companies offer discounts for things like anti-theft devices, anti-lock brakes, air bags, and so on, so if your agent doesn’t ask you about those safety items, make sure you let him or her know that your car has them.
- Much like bundling auto insurance with home owner’s insurance, you may also get a break if you insure multiple vehicles with the same company. Ask your agent.
- Keep your credit history clean, and your driving record clean. Both of these things can save you money on auto insurance. Like it or not, any negatives in your credit history can cause your insurance rates to be higher, because you may be considered a greater risk to the insurer.
- Some insurance companies will give you an “occupational” discount. For instance, if you are a business manager, nurse, engineer, teacher or professor, fire fighter, police officer, scientist, CPA or pilot, you may qualify for a discount. Ask your agent if your insurance company offers occupational discounts for your profession.
- You may qualify for a discount by being a member of certain associations, such as auto clubs, credit unions, alumni associations, and some professional organizations. Check with your agent to see if your organization qualifies you for a discount.
- If you pay your insurance premium by automatic electronic funds transfer rather than mailing a check, or paying it manually online, you may qualify for a discount, and if you pay your premiums every six months or once per year, you may save over making monthly payments. It’s worth checking to see if your insurance company offers those discounts.
- If you live in a city, and carpool to work, you will not only save wear and tear and gas money, but you will be putting less miles on your vehicle, which means a savings in insurance rates.
- Is your car paid off? Then consider lowering your collision coverage. You may have more coverage than you need if the vehicle is older, and not worth as much as it once was.
- Lastly, check to see if your auto insurance company offers electronic monitoring of your driving habits. You could save anywhere between $100 to $300 per year by simply allowing this to be installed in your vehicle.
There you go! A long list of things you can do in order to save money on your auto insurance. Not all of these things will be offered as discounts at all auto insurance companies, as discounts vary from company to company, but it’s worth a little time on the phone to see how many discounts your household can get.