Ten Tips to help you Save on Car Insurance

Car insurance is required by law in all states. With insurance rates going up, it makes sense to try to save anywhere you can when it comes to your car insurance.  There are some basic things you can do everyday to keep your insurance as low as possible, such as driving the speed limit, stopping at stop signs and using your turn signals.

Here are ten more ways you can save on your car insurance:

1) Compare rates:

Many people have had the same car insurance for years. Check around at different companies that sell car insurance and compare those rates with what you are paying now. You may find that you are paying way too much for that policy you have held onto for years.

You should check at least three places and compare against each other. Car insurance rates can be different with different companies. Companies need to be competitive to get people to buy from them. Take advantage of that.

2) Check for multi-policy discounts:

If you own your home, car, boat etc., Insurance agencies will give you a discount for insuring all of your policies with them. Multi-car discounts are available for those of you who own more than one vehicle. Many insurance agencies advertise these savings. Make sure you ask about multi-policy rates.

3) Check for discounts:

Some insurance providers will give up to a 15 percent discount to a student that has a grade of B or above. Some also offer discounts for teen who have taken a defensive driving course.

Some insurance agencies are now offering discounts for things like safe driving Re: All States safe drivers discount. People age 55 or older may be able to receive a discount, as may someone who hasn’t had a speeding ticket or moving violation in three years or more.

There is also a discount called the “low mileage discount”. This is given out to a driver who doesn’t drive often, such as someone who drives only to church and back on Sundays or a person who rides with someone else to work everyday, as in a car pool. Make sure your insurance holder knows how far you are going to be driving, especially if you will not be driving often or far.

4) Raise your deductible:

Deductibles are the amount of money you pay before your insurance pays. The higher the deductible, the lower your rate will be. If you increase your deductible from $200 to $500 , you can save approximately 15-30 percent off your insurance. Increase your deductible to $1000.00 and save even more. It is a good idea to have the amount of the deductible in a savings, just in case it’s needed.

5) Decrease your coverage on older cars:

Ask about dropping the collision and/or comprehensive coverage if you own an older car. If your car is less than 10 times the cost of your premium, purchasing comprehensive and/or collision may not be cost effective. Visit Kellys Blue Book to find out how much your car is worth.

6) Buy online:

Many times online companies offer insurance for a lot less than other companies. You may also be able to get your “proof of insurance” that same day by printing it out. Online companies may also offer more discounts than physical companies. 

Paying for your car insurance policy online can also cost you less. Some companies also give you a discount if you put your payments on “auto-pay”. Ask about online discounts and payment plans.

7) Remove towing package on policy:

A towing package in the long run can be quite an expense. They general cost around $10-$20 dollars a month and charge $100 per tow, depending on the distance that the car needs towing.

Keeping up on scheduled maintenance, fixing broken parts in a timely manner and keeping gas in your car can decrease the chances that you will need a tow because of a breakdown. You may be taking a chance, but it may be a small chance that could have a significant savings in the long run.

8) Check rates before you buy your car:

High profile cars, such as Corvettes or Mustangs, can cost quite a bit more to ensure than a low profile car (compact, non-sports car). That’s because the chances of theft are higher in a high profile car. A high profile car also costs more to be repaired or replaced after an accident than does a low profile car.

9) Pay “annual” premiums:

Insurance companies will charge extra to set up monthly payment plans. If you can, pay by the year, or even every six months. This can save you monthly set-up charges.

10) Keep a clean record:

A person with a clean record is going to pay a lot less than someone with points on their license. Follow the rules of the road by going the speed limit, stopping at stop signs and using your turn signals when needed. Following all the rules while driving can keep points off your license and keep your insurance rates low.

It’s never a bad time to save money. Whether you have had the same car insurance coverage for years or are looking at car insurance for the first time, following the tips above can assure that you get the best savings you can from your car insurance.