You, Your Wallet, and Your Car Insurance: Four Effective Tools to Save Money on Insurance Premiums
Car insurance is something every car owner has to deal with, regardless of whether he or she likes it or not. Insurance premiums can put a lot of stress on your budget; this is especially true for teen drivers, college students, and for people whose driving history is less-than-perfect (speeding tickets, suspensions, and revocations.) Most people take their car insurance decisions lightly, usually making a one-time effort of researching car insurance quotes and picking the cheapest one at that particular moment. Many other derivatives that heavily attribute to car insurance premiums are often overlooked.
There are several money saving instruments that may save hundreds of dollars on car insurance premiums, regardless of your age, driving history, credit score and geographical location.
Defensive Driving Courses
Most people are aware of the fact that defensive driving courses may help to remove points from one’s driving record. Still, very few know that defensive driving course secures a 10% discount on all car insurance premiums, whether it is a basic liability policy for a beat-up truck or an expensive full coverage protection for a brand new sports car. No matter how much you pay for your car insurance now, few hours of your time and a couple of 20-dollar bills are a good investment for a 3-year insurance premium drop.
Adjusting the coverage limits on your car insurance is another effective money-saving tool. Most drivers renew their car insurance policy automatically without even thinking of revising the coverage. As time passes by, your insurance needs do change. Why pay for rental coverage if you have two or more vehicles in your household? If you have roadside assistance from manufacturer that is still good why duplicate the coverage with your insurance company? Why pay comprehensive and collision if your car is only worth a fraction of what you originally paid for it? Straightforward answers to questions above may help you to take off anywhere between $20 and $400 per semi-annual coverage period.
Revising deductibles is another budget-saving opportunity. Most people go for a $250 deductible without knowing that raising a deductible to $500 or even $1,000 may help to save additional five to fifteen percent on your car insurance, depending on your insurance company, driving history, and some other factors. In case our car is financed, check with your auto lender – most banks and auto financing companies allow for a $1,000 deductible on collision and comprehensive coverage. Are you worried you would not have enough cash to cover your deductible in case something happens? Try to remember how many times you had your car stolen, flooded, or crashed in the past five years. Put the money you saved on your car insurance into your savings account – you may end up using it for a nice little vacation few years down the road instead of giving it away to your car insurance carrier.
Insurance Policy Shopping
"Shop until you drop," – this does not only apply to Black Friday store offers, but also to your car insurance selection. It is a great idea to start your car insurance shopping before you buy your next car or truck. Some cars are cheaper insurance-wise than the others are. Few of us know that besides considering factors that you have little control of in a short-term, such as your age, credit history, history of past accidents and traffic violations, auto insurance companies consider car make and model, engine size, crash rating, and even color! Do not think so? Ask your insurance to give you a full coverage insurance policy quote on a green four-cylinder family sedan and a bright yellow (or, even worse – red!) V-8 convertible sports coupe – you will feel the difference!
People do not like change, no matter whether it is good or bad, as it puts extra stress on them. That is exactly why most of us mail checks to the same insurance company for years, getting excited if we get an extra twenty bucks off a semi-annual policy. Car insurance market is highly competitive these days, and many insurance companies will be more than eager to compete for your business, offering far better deals than you may already have. The bottom line is no matter how good of a deal you had on your car insurance a year ago, double check with other auto insurance carriers to see if it will withstand the competition today.