Reducing the Cost of your Car Insurance

In a down economy, people are looking to cut costs on anything that can possibly be reduced. One great way to reduce your monthly bills is to cut the cost of car insurance. One of the biggest mistakes people make is to not shop around when getting insurance. People assume that they are getting a great deal from the provider they currently have, and don’t realize they can save money simply by shopping around. When shopping for car insurance, what are some ways that a policyholder can save on insurance?

When shopping for car insurance, keep in mind anything that has been done to improve the safety record of the driver, or drivers on the policy. Has anyone in the household taken driver’s ed, defensive driving, or have any safety features on the car, or cars being insured? Anything that a policyholder can do to show that they care about safety will ensure that money is saved on their insurance, as insurance companies will give breaks to people who aren’t as much of a risk.

Are you shopping for yourself, or are you shopping for an entire family? If you are a single policyholder, there will be factors included that may not come into play as much if you are on another policy. If you are a single policyholder, things like age, driving history, and years of driving experience come into play. Also a single policyholder won’t be to get discounts for having multiple cars insured, as someone who has a family would.

For example, if a policyholder is 17, and just got a license, that person would pay more on their own, as opposed to being on a parent’s policy. That is because the parents would get a discount for having multiple cars on the policy, and would get discounts, and other deals based on their own record of driving, and past history with the insurance company. It is almost like having a co-signer on a loan, you get a good deal because someone who has proven to be a good risk is backing you.

Having a clean record, and not making claims is a good way to lower your insurance. Some companies will reduce your deductible every month you don’t have an accident. If you can make it through the first six months without an accident, or a claim, your insurance can go down too. My insurance went down almost 20 dollars just because I went six months without an accident, or a claim on my policy.

So if you want to save money on your car insurance, remember to make yourself as good of a risk as possible. Make sure your car has as many safety features as possible, and make sure that as a driver, you are as safe as possible. Shopping around is a good idea too, as you can find better deals with some companies, as opposed to the one you have now. Keep in mind that age, and driving record are a factor, as well as if you are on your own, or a single person on a policy. Keep all this in mind, and find the best deal you can!