|
Inside this Article
How
to Reduce Auto Insurance Costs
|
Sponsored
Links
|
Here’s something to
stop and consider: When’s the last time you
devoted mental energy to the particulars of your
auto insurance policy? Did you basically set it
and forget it?
It’s incredibly
easy to let that happen — and if it has happened
in your case, it might be high time to refresh
your memory on just where your policy stands.
|
You may be able to
take a bite out of your insurance bill with a minimal
amount of effort.
These quick tips
can help you see whether you can save a little – or
a lot.
1. Request
higher deductibles. The deductible is the
amount of money you have to fork over before your
insurance policy comes to the rescue. By bumping your
deductible up from $200 to $500, you could lower the
cost of your collision and comprehensive coverage by
15 percent to 30 percent. By increasing it to $1,000,
you could decrease that cost by at least 40 percent.
2. Forgo
coverage you don’t need. Think about
dropping collision and/or comprehensive coverage on
older cars with a low market value. Such coverage
often is not worth it because any claim you make
probably won’t exceed the cost of the insurance and
the deductible amount.
3. Avoid
duplicating medical coverage. If you
already have good health, life and disability
insurance, buy only the minimum personal injury
protection required by the state where you live.
4. Purchase
a low-profile car. It’s more expensive
to insure a vehicle that’s expensive to repair,
popular with thieves or known for not having the
greatest safety record.
5. Carpool
or drive less. Many insurance companies
offer “low-mileage discounts” to policyholders who
carpool to work or drive a lower-than-average number
of miles each year. You can call your insurer and find
out whether you qualify.
6. Opt for
safety gear. You can qualify for a
discount on many policies if you have air bags,
automatic seat belts, anti-lock brakes and daytime
running lights. An approved alarm system or other
anti-theft device can give you additional savings.
7. Seek out
discounts for teens. Insure teenagers on
the parents’ policy rather than a separate policy.
Teens who maintain good grades and pass an approved
drivers’ education course usually can qualify for
reduced rates. An additional discount may come into
play if your child goes to college more than 100 miles
from home and doesn’t bring a car along.
8. Combine
policies with one carrier. You may save
money if you insure all your vehicles, including
trailers and recreational vehicles, on a single
policy. Your car premium also may go down if you buy
homeowners’ or life insurance from the same company.
9. Ask
about other discounts. You also might be
able to pay less if you’re older than 50 or 55
and/or retired; if you’ve had no accidents or moving
violations in three years; or if you’re a longtime
customer. Keep an eye on the bottom line, though. Call
a few other insurers to make sure you’re paying the
lowest overall amount.
10. Pause
before paying extra for roadside assistance.
It might be good to line up a roadside assistance plan
elsewhere because a tow could increase your auto
insurance premium and might even affect your
eligibility for coverage. What’s more, you may
already have an adequate roadside plan through your
credit card.
Some
insurers offer discounts for more than one car, no
accidents in three years, drivers over 50 years of
age, driver training courses, anti-theft devices,
anti-lock brakes and good grades for students. See the
following page for a guide to these and other
discounts.
Car Insurance - Cost Reduction Tips
over 50% of people with garages
never put their vehicles in them? So if you live in a
high risk or busy area, consider all the possibilities
of leaving your vehicle in a garage overnight or at
the very least increase the level of security on your
vehicle.
If you drive your vehicle or use
your vehicle to work, on template the alternatives of
public transport or using a company vehicle for work
purposes. A garaged vehicle during the day reduces
your premium.
If your vehicle is garaged,
regardless of where you live, your premiums can be
significantly reduced.
When purchasing a vehicle, it is
worthwhile assessing the cost of replacement parts and
maintenance, as this will affect the cost of premiums.
Car Insurance - Tips
& Warnings
Avoid getting tickets you'll be eligible for the best
possible insurance rate. Stay with a company
that gives fair, friendly and economical service.
Never lie about your driving record to reduce
rates. Misrepresentation can invalidate a contract,
and your insurance company can refuse to pay a
loss.
Sponsored
Links
Inside this Article
|
