Tips to Save on Car Insurance
Insurance is a necessity in our society, providing us security that we need to drive. But with the rising cost of gas and cars, the insurance rates are only increasing. There are some ways to help reduce the cost of car insurance without sacrificing your protection:
-Keep an eye on overdue fees. If you haven't paid your annual or biennial fee for six months, your company will bump up your rate by 10% if they send you a notification about it.
-Know when discounts are available and use them for certain types of vehicles and driving habits. Some companies offer discounts like multi-vehicle discounts or driving experience credits which can be used towards lowering your premium if you've been insured under another company before.
-Check with your state's website to see if they offer unique car insurance policies. Many states will have options that fit your lifestyle and circumstances, but you have to look for them.
-Don't be afraid to shop around on a policy renewal. Many companies will give you a quote before your rate goes up, so use that time to get the best deal.
-If you own an older car, it might be better to go without full coverage and just be sure you have enough liability so if something does happen where you are at fault, someone can come after your assets for the full amount of their damages incurred. This might not be the case if your car is newer with low miles, but it's worth considering.
-The time of year when rates tend to rise is at the end of the year. If you wait an extra month, the cost of your policy can be lower than it would be on your renewal date.
-Getting a safe driving record can help your rates, too. If you don't have any accidents or tickets, but you're still getting into ticket trouble, companies will know that you are capable of taking care of yourself in a car accident and will offer you a cheaper rate as compensation.
-Don't ignore the little things that could result in higher insurance expenses as well, like speeding violations or not wearing your seatbelt while traveling between states.
-If you're a safe driver, you might be able to get your auto insurance with a company that focuses on just that. You will pay more for the coverage, but if you're out of risk and have no violations across the board, it might be worth it.
-Add your teenage children first to your policy before adding yourself. That way you can get a discount on their rate by adding them in at the right time. Otherwise, they'll end up being added when there is another auto insurance checkup or if there is a violation involved in your policy.
-If you have a safe driving record, you might qualify for lower rates. This is not the only factor that will lower your rate, but your company will be more likely to offer it to you if they see your record.
-If you have a lot of restrictions on your policy that aren't typical for a safe driver, don't ignore them. If there isn't a good reason behind the restriction, there might be an opportunity for you to get autorenewed at a better price than that of someone with no restrictions or violations.
-Buying car insurance online can save you money sometimes when comparing rates and having applications handled both by phone and website will save time as well. The online application will take between 10 and 20 minutes to fill out and you can compare up to five quotes in that amount of time.
-Ask your agent if they have any precursory information for you in advance. If you get a speed ticket, many companies will know about it before you buy a policy from them and they might not want to insure someone at high risk for accidents. Some companies won't offer insurance at all to people with minor violations or tickets.
-Keep your car in the best shape possible when it comes to repairs. Many companies will see your vehicle as a "total loss" if it gets in an accident and is not worth the cost to fetch back to the state of safe operation. In most cases, they will use that money to pay for your coverage instead of paying out anything on the car's actual value.
-Carry all your old documentation with you every time you go to purchase insurance. Some companies ask for proof of ID or proof of address when you apply for a new policy, so make sure you have it with you at all times in case you need it.
-Take pictures of all major damage and repairs made on your vehicle. In case you have an issue with your claim, they will help your insurance company determine the true value of what is being repaired.
-If you can afford to put money away every month into a savings account, do it. You should try to save as much as possible and put it towards any kind of emergencies that may come up. This goes for health and auto insurance just as much as a rainy day fund.
-Always be honest on your applications after you're approved for a policy. If you don't tell them about something that will raise your premium later on, it can happen and the company won't be liable for rising rates based off false information.
-If you have a good driving record, you can get a lower rate than what is normal for your level of risk.
-If you have a good driving record, get an auto insurance quote from more than one company to compare rates. It's important to know what the difference between the quotes are before switching just because your current company is offering more money on their renewal date than another is.
-Never use a loan to pay off your high risk vehicle or other high risk assets like jewelry and furs. These are things that won't be covered under your policy and if anything happens, you will lose them.
-Read up on different aspects of auto insurance before applying for one. Many companies will highlight the importance of planning your car insurance before you buy a vehicle, but don't let your company talk you into buying a more expensive car if it's unnecessary.
-If you want to get better rates for your current situation, find out what you can about how much other people are paying for their insurance. You can compare retail prices and do some math to figure out how much more you would save on a more expensive car vs a cheaper one or if that extra features of new model cars would really be worth higher premium costs.
-Start learning the ins and outs of auto insurance as soon as you're old enough to read and write information on the subject. Taking a few months of online classes and going over the details of auto insurance will help you to better understand your options and how they work.
-Properly maintaining your vehicle is very important when considering auto insurance rates. If you skip on maintenance, you could end up in a car accident and your insurance rates will go up. Make sure to get the recommended maintenance done on time each year so that your vehicle is kept as safe as possible in case there are any major issues with your coverage.
-If you want to save money on your auto insurance, consider buying it in bulk and then switching around among different types of vehicles during the year to see who gets the best rate for their overall level of risk with your policy.
Conclusion
The information in this post was gathered from the following sources:
Insurance Information Institute
Insurance.com
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