Auto insurance can be quite expensive. However, there are ways you can save money – sometimes hundreds of dollars – by following some simple steps. Here are some suggestions that may result in significant savings as you get the cheapest quotation for insuring your vehicle.
Ideas to Save Money on Car Insurance
- Compare different insurers’ pricing. All insurance companies claim to save you money. Some of these claims are true, while others are not. Often, it depends on your current auto insurance coverage. However, comparison shopping (using the same coverage limits for all quotations) will indicate the best pricing. After you identify the best prices, research the companies’ reputation for customer service. Unfortunately, some insurance companies with the lowest prices may not provide high-quality customer service, treating you like a number. Should you have an accident or other loss, you’ll appreciate an outstanding claims department.
- Look for age or other discounts. If you own more than one vehicle or can insure another asset, e.g., a home or apartment, you may qualify for welcome discounts ranging from 10 to 25 percent discounts. Also, if you’ve had your 25th birthday, but haven’t celebrated your 65th birthday, you’ll find age discounts.
Auto accident looking for insurance
- Check your area’s crime rate. Insurance companies typically offer better rates for low crime areas. Along with getting lower home insurance rates, you’ll get better auto insurance quotes because the risk of claims is less. There are fewer cases of theft, vandalism, and other crimes that might damage your vehicle. Should you live in a high-crime area, consider moving to a lower crime-rate neighborhood. You will save big dollars for your car insurance.
- Think about buying a different auto. Some cars are cheaper to insure than others. Why? Vehicles with lower accident and theft losses, are less costly to insure. Another factor: Some autos are cheaper to repair than other vehicles. True sports and luxury cars typically suffer more theft losses and are more expensive to repair than so-called ‘family’ vehicles.
- Consider increasing your deductible. Car insurance costs often are much lower if you increase your deductible amount. For instance, increasing your deductible from $100 to $500 can lower your premiums significantly. Why? The insurer will pay out less if you have loss claims.
- Examine the so–called ‘multiple vehicle discounts ‘ offered by different companies. As noted, insuring more than one auto with the same insurer decreases rates. Some insurance companies offer substantial discounts when you insure two or more vehicles. You might save 10 or 15 percent from your monthly bill if you insure multiple vehicles.
These simple ideas can save you hundreds of dollars every year. When you get your quotation from a company, you will quickly be able to compare ‘apples-to-apples’ quotes for insuring your vehicle(s). If you ask to insure your auto and home, you will also receive a discount.
Should you own an older vehicle, consider removing excess coverage, e.g., collision insurance. You only should pay for the insurance coverage you need. Older vehicles with expensive collision coverage may be useless to you if the vehicle has a low ‘book value.’ However, liability coverage is always necessary. Many US states mandate minimum liability coverage so you have little choice but to keep this protection.
