When is the last time you reviewed your auto insurance policy? If you live in our area, you probably signed-up with a car insurance company, began paying the monthly dues, and then essentially forgot about the policy. After all, how many of us really think about our car insurance policy unless we get in an accident and it all of a sudden becomes invaluable?
If you don’t review your policy regularly and stay in touch with your car insurance company, you may be missing out on some significant discounts. Take a moment to review these ten tips to save money on your car insurance:
1. Bundle other policies: Having all of your insurance with one company not only makes it easier to keep track of your policies. It will likely save you money as well. You can typically save 10 to 15 percent if you buy your renters insurance or homeowners insurance from the same carrier.
2. Request higher deductibles: One of the best ways to save money on your car insurance is to increase your deductibles. The deductible is the amount of money you have to pay before your insurance company picks-up the rest of your tab. Assuming more risk by increasing your deductible from $500 to $1,000, for example, can save you as much as 30 percent on your car insurance.
3. Consider the value of the vehicle: Expensive cars cost more to repair and, consequently, cost more to insure. In addition to evaluating the value of the car, you should also do research to see which vehicles are popular with thieves and whether the car you’ve had your eye on has a good safety record. All of these factors can increase insurance premiums.
4. Prepay your insurance: Many car insurance companies charge up to 3 percent of the policy when you setup a monthly payment plan. You can avoid this extra expense by prepaying your insurance at the beginning of the year or at least every six months.
5. Ask about low mileage discounts: Many car insurance companies offer low-mileage discounts if the vehicle gets driven a lower-than-average number of miles every year. For example, if you have a short daily commute and typically only drive your car to run errands around town, you may be eligible for a discount. This discount may also apply to a secondary vehicle that is rarely driven.
6. Maintain a good driving record: Many insurance carriers will begin to offer discounts after three years of being accident and ticket free.
7. Ask about a renewal discount: You should also inquire about renewal discounts, which are typically given to policy owners who have a long history with the car insurance company. Most carriers are happy to provide a renewal discount if you haven’t had an accident or otherwise cost the company money for an extended period of time.
8. Ask about discounts for safety features: Many insurance companies offer discounts on vehicles with safety features such as anti-lock brakes, automatic seat belts, and air bags.
9. Opt-out of coverage you don’t need: You may want to drop collision or comprehensive coverage on older cars that have a low market value. This extra coverage probably isn’t worth it if a claim won’t likely exceed the cost of the insurance and the amount of the deductible.
10. Ask about discounts for teen drivers: Teens who pass a driver’s education course and maintain good grades can often receive reduced rates, as long as they are insured on your policy.
It’s important to keep in mind that reputation, service, and quality of coverage are the most important factors when selecting a car insurance company, but we hope these tips will help you save money as well.
Learn more about purchasing the right type of car insurance for you and your family by visiting http://www.KellyWilliamsIns.com or calling 562.498.8661.