Car insurance is a necessary evil; we are required by law to have it, yet we hardly ever use it. Like all other bills, I have researched ways to save money on car insurance that actually work. Some of these options are well known and some are new. To be thorough, I have included the old and the new ways to save money on car insurance.
Multiple Line Discount - one can take advantage of deep discounts by insuring all cars, boats, homes, and apartments with one insurance company.
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.
Shop around for deals - Tell you agent you are shopping around for cheaper premiums. If you are valued customer, your agent should re-evaluate your policy and look for ways to reduce your premium.
Under 25 parent discount - At the age of 25, car insurance premiums decrease because insurance companies feel the driver is now more experienced. However, parents under the age of 25, will also receive this discount because the insurance companies feel a parent is more responsible. Note: you will not receive another reduction 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.
Avoid short-term policies - Penalties are often applied, think long-term
Avoid lapses in your insurance - If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.
Only insure cars that you drive - The old Ford that has not been driven in years should not be insured. However, depending on the state you live in, all registered vehicles must be insured. To avoid any problems make sure you register any non-working vehicles as 'inoperable'.
Refresh your driving skills - confirm that the money you save when your premium is lowered outweighs the cost of the training courses.
Avoid accidents and tickets - Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 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.
Keep your credit score high. Some insurance companies will charge people with low credit scores a higher premium because they are expected to file more insurance claims.
Don't pay your premiums monthly - I love this money saving tip! Avoid the monthly surcharge fee by paying for your premium semi-annually. Start saving to make the 1st semi-annual payment. Once that payment is made, automatically transfer the amount you would pay into a high-yield savings account to earn interest. When your semi-annual payment is due, withdraw the needed amount from you saving account. The interest you earned is now free money.
Happy Savings!!
Multiple Line Discount - one can take advantage of deep discounts by insuring all cars, boats, homes, and apartments with one insurance company.
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.
Shop around for deals - Tell you agent you are shopping around for cheaper premiums. If you are valued customer, your agent should re-evaluate your policy and look for ways to reduce your premium.
Under 25 parent discount - At the age of 25, car insurance premiums decrease because insurance companies feel the driver is now more experienced. However, parents under the age of 25, will also receive this discount because the insurance companies feel a parent is more responsible. Note: you will not receive another reduction 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.
Avoid short-term policies - Penalties are often applied, think long-term
Avoid lapses in your insurance - If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.
Only insure cars that you drive - The old Ford that has not been driven in years should not be insured. However, depending on the state you live in, all registered vehicles must be insured. To avoid any problems make sure you register any non-working vehicles as 'inoperable'.
Refresh your driving skills - confirm that the money you save when your premium is lowered outweighs the cost of the training courses.
Avoid accidents and tickets - Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 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.
Keep your credit score high. Some insurance companies will charge people with low credit scores a higher premium because they are expected to file more insurance claims.
Don't pay your premiums monthly - I love this money saving tip! Avoid the monthly surcharge fee by paying for your premium semi-annually. Start saving to make the 1st semi-annual payment. Once that payment is made, automatically transfer the amount you would pay into a high-yield savings account to earn interest. When your semi-annual payment is due, withdraw the needed amount from you saving account. The interest you earned is now free money.
Happy Savings!!
About the Author:
I am frugal by nature and am sharing my money saving tips for all who are interested. Check out this site if you are looking for easy, realistic ways to reduce your grocery bill, reduce monthly bills, and work with a budgeting spreadsheet. See you on the inside!!
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