Everybody hates bills, so why should car insurance premiums be any different. And just like other bills, such as cable, grocery shopping, and electricity, there are ways to save on the cost of car insurance. Listed below are 15 realistic approaches to help everyone reduce their premiums.
Multiple line discount - insure all cars and homes with the same insurance company to receive a discount
Limit Your Driving - If you work from home or were recently laid off, tell your agent. Many companies will reduce your premium if you drive less than 100 miles per week (varies by insurance agency).
Discount for Safe Driver - You might be eligible for a rate reduction if you have not been in an accident or received a ticket for several years.
Raise your deductible - Raising you deductible can save you hundreds of dollars every year, but make sure you have money saved to cover the higher deductible if needed.
Comparison shop - Let your agent know that you are looking at other agencies to reduce your monthly premium; it is likely the agent will pull some strings to keep you as a customer. Caution: if you find a better deal, confirm that it is not an introductory price. Many times your premium will increase to what you were paying with your previous insurance agent.
Discount for parents under 25 - Car insurance companies reduce their policy holders premium at the age of 25 assuming there have been no accidents, some insurance companies offer this reduction for parents under that age of 25. However, another reduction will not apply once you turn 25.
Full coverage or liability - determine if full coverage is still needed by checking the blue book value of your car at Kelley Blue Book. If the value of your car is worth more than the cost to repair it, keep full coverage, if not, drop down to liability.
Get quotes before buying a new car - The make, model and color of a car will influence your premium cost. So before you go out to purchase that red sports car, or black Hummer, check with your insurance agent, the increase in policy price might scare you. Also, certain cars are stolen more often for their parts and increase the cost of the premium.
Steer clear from short-term policies - You might receive a penalty for purchasing a short-term policy, go with long-term.
Never let your insurance policy lapse " it might be difficult to obtain insurance again because the insurance agents see you as irresponsible or high-risk and your insurance may be more expensive than it was before to renew.
Don't insure vehicles you don't drive - Take the old Chevy that you have been working on for years off your policy. However, some states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as inoperable" to avoid any complications or penalties.
Refresh your driving skills - confirm that the money you save when your premium is lowered outweighs the cost of the training courses.
Don't hit anything or get a ticket - Your fault or not, this can increase your policy rate for several years. Keep your eyes on the road. Avoid tickets. Speeding tickets and other moving violations can push your rates up substantially and these, like accidents, usually affect your insurance for 3-5 years.
Don't let your teenager drive your car - Teenagers are viewed as inexperienced drivers and cost a small fortune to insure. Instead of letting them drive your car, purchase a reliable used car and only get liability.
Have a high FICA score - Many insurance companies are now factoring in ones credit scores to calculate premium cost. A person with a high credit score is rewarded with a lower premium and a person with a low credit score will be punished with a high premium.
Pay semi-annually - This is my favorite way to save money on car insurance. Instead of paying your car insurance monthly, pay semi-annually. The 1st payment is the hardest because you will have to pay the full amount to cover the first six months; think ahead and start saving for this switch. Once you have paid your 1st six month premium, automatically transfer the monthly premium payment into a high yield savings account to earn interest until semi-annual payment is due. By doing this not only are you saving money by avoiding the monthly surcharge fee you are also making money off of interest.
Happy Savings!!
Multiple line discount - insure all cars and homes with the same insurance company to receive a discount
Limit Your Driving - If you work from home or were recently laid off, tell your agent. Many companies will reduce your premium if you drive less than 100 miles per week (varies by insurance agency).
Discount for Safe Driver - You might be eligible for a rate reduction if you have not been in an accident or received a ticket for several years.
Raise your deductible - Raising you deductible can save you hundreds of dollars every year, but make sure you have money saved to cover the higher deductible if needed.
Comparison shop - Let your agent know that you are looking at other agencies to reduce your monthly premium; it is likely the agent will pull some strings to keep you as a customer. Caution: if you find a better deal, confirm that it is not an introductory price. Many times your premium will increase to what you were paying with your previous insurance agent.
Discount for parents under 25 - Car insurance companies reduce their policy holders premium at the age of 25 assuming there have been no accidents, some insurance companies offer this reduction for parents under that age of 25. However, another reduction will not apply once you turn 25.
Full coverage or liability - determine if full coverage is still needed by checking the blue book value of your car at Kelley Blue Book. If the value of your car is worth more than the cost to repair it, keep full coverage, if not, drop down to liability.
Get quotes before buying a new car - The make, model and color of a car will influence your premium cost. So before you go out to purchase that red sports car, or black Hummer, check with your insurance agent, the increase in policy price might scare you. Also, certain cars are stolen more often for their parts and increase the cost of the premium.
Steer clear from short-term policies - You might receive a penalty for purchasing a short-term policy, go with long-term.
Never let your insurance policy lapse " it might be difficult to obtain insurance again because the insurance agents see you as irresponsible or high-risk and your insurance may be more expensive than it was before to renew.
Don't insure vehicles you don't drive - Take the old Chevy that you have been working on for years off your policy. However, some states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as inoperable" to avoid any complications or penalties.
Refresh your driving skills - confirm that the money you save when your premium is lowered outweighs the cost of the training courses.
Don't hit anything or get a ticket - Your fault or not, this can increase your policy rate for several years. Keep your eyes on the road. Avoid tickets. Speeding tickets and other moving violations can push your rates up substantially and these, like accidents, usually affect your insurance for 3-5 years.
Don't let your teenager drive your car - Teenagers are viewed as inexperienced drivers and cost a small fortune to insure. Instead of letting them drive your car, purchase a reliable used car and only get liability.
Have a high FICA score - Many insurance companies are now factoring in ones credit scores to calculate premium cost. A person with a high credit score is rewarded with a lower premium and a person with a low credit score will be punished with a high premium.
Pay semi-annually - This is my favorite way to save money on car insurance. Instead of paying your car insurance monthly, pay semi-annually. The 1st payment is the hardest because you will have to pay the full amount to cover the first six months; think ahead and start saving for this switch. Once you have paid your 1st six month premium, automatically transfer the monthly premium payment into a high yield savings account to earn interest until semi-annual payment is due. By doing this not only are you saving money by avoiding the monthly surcharge fee you are also making money off of interest.
Happy Savings!!
About the Author:
I am frugal by nature and am sharing my greatest ways to save money for all who are interested. Check out this site if you are looking for easy, realistic ways to reduce monthly bills, your grocery shopping bill, and the benefits of using a budget spreadsheet. See you on the inside!!
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