Car insurance is one of the most important and expensive bills you are responsible for. A few different things usually determine the cost of auto insurance, for instance, the type of car you drive, the neighborhood you live in, and the distance you drive to and from work. Luckily there are factors that you can control that can help lower the cost. There are a number of ways to save on car insurance. Here is a helpful list:
Assuming more risk and keeping your deductible as high as possible could lower the cost of your premiums. It is likely that you will not file for a claim unless the damages are over $1000 anyway because most insurance companies use a claim as an excuse to raise your rates, so do not use it unless you really need to. But also be sure that you put away enough cash to cover any out of pocket expenses in case you get into any accident.
There are many online services that provide various quotes for your car make and model. Not all car insurance companies provide the same services and prices so do the research and compare rates from different companies. Also because the insurance market prices are constantly changing, it is a good idea to check what's available periodically.
Believe it or not there are discounts available out there, again the key thing is research and ask your insurance provider. Here are some examples:
Also, if you combine multiple policies together ie: car and renters, you can save on the bundle and simplify your insurance bills at the same time.
After an accident, get a second opinion from another repair shop and take notes. You can usually negotiate the discrepancy between the appraised damage from the repair shop suggested by the insurance company and another.
Drive safely and avoid speeding tickets and other moving violations. Having violations in your record can substantially increase your premiums for at least 3 and sometimes up to 5 years!
You may be able to avoid price penalties attached to buying policies that are 6 months or less. The longer the term, the cheaper the rates. Also, paying it in full can save you installment charges. But if you must pay in installments, another idea is if you have your payments automatically deducted from your bank account.
Consider buying the minimum personal protection required by the state you reside in if you already have a good health insurance policy.
If you own an older car with a low market value, you may want to consider dropping the collision coverage. Assess your car's current value by visiting the Kelley Blue Book site if it is lower than the cost of insurance, you may want to just purchase the minimum required liability coverage.
Drive a car with the most safety features. Driving a vehicle with air bags, anti lock breaks, stability control, daytime running lights, an approved alarm system or anti-theft device can give you additional savings on your car insurance.
Simply put, the more expensive or high maintenance car you drive, the higher your premiums will be. It is a good idea to consult your insurance provider and get some quotes for the make and model before you purchase a vehicle.