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How to Get Cheap Car Insurance

How to Get Cheap Car Insurance

There are hundreds of millions of drivers with car insurance in the United States. Many drivers receive their auto insurance bill and wonder why they are paying so much. There are a number of steps that drivers can take to ensure that their auto insurance is as affordable as possible.

Raising Auto Deductibles

Drivers should often consider raising deductibles on their auto insurance. Many drivers have low deductibles that make it easy to use insurance. Drivers who rarely place a claim with their auto insurance company should consider raising their deductible. A customer may be able to save up to 40% by changing the deductible on their policy from $250 to $1,000.

Drop Additional Auto Coverage

Many drivers who have older vehicles may not be aware of expensive options they have on their auto insurance. A customer who has an older vehicle but still maintains collision/comprehensive coverage on it may pay hundreds of dollars a year more for their coverage. Older cars may not receive a full payout for these claims either. Customers should strongly consider drop collision/comprehensive policies or raising the deductibles on these policies.

Avoid Extra Medical Coverage

Drivers who already have health coverage through work should avoid purchasing health coverage from their auto insurance company. Drivers will receive coverage from their primary health care policy. Drivers only need to maintain the statement minimum personal injury protection liability insurance. Anything extra will only increase the cost of the policy as well as over protect the driver.

Purchase a Vehicle That is Cost Efficient

Drivers who want to save money every month should purchase a vehicle that is cost efficient. An insurance customer who purchases a vehicle that is stolen often will be charged a higher premium. Any driver who decides that they want to have an expensive sports car because it looks cool will have a higher premium. Vehicles that have costly technology or expensive repairs costs are likely to have higher insurance premiums as well. Drivers can save a large amount of money by purchasing a vehicle that is unlikely to be stolen and has a good reputation for repair.

Drive Your Vehicle Less

Drivers who drive less are able to save money on their policy. A driver who drives only 5,000 miles a year in their vehicle will pay a lower premium than drivers who drive 12,000 miles a year. Drivers also will have a lower likelihood of being involved in an automobile accident. Drivers who carpool may also receive a discount on their auto insurance. Customers should contact their auto insurance company to inquire about a potential discount.

Notify Your Insurance Company about Safety Features

Many insurance companies are automatically able to see which safety features are installed in your vehicle. However, some insurance companies do not automatically apply these discounts. Many auto insurance companies allow drivers to receive a discount for having air bags, ABS brakes or an alarm system. Insurance companies may even bundle these discounts together to give the customer even further savings.

Add Teens to Parents Policy

Many parents may not want to have their teenager on their auto insurance policy. However, teenagers who are on their own policy typically have to pay over $1,000 more a year for similar coverage. Teenagers who have good grades as well as pass a drivers education class can qualify for discounts. College students may also qualify for discounts depending upon the auto insurance company.

Carry All of Your Insurance With One Company

Many companies provide a loyalty discount for having multiple policies with the same company. This means that a customer who has a homeowners', life insurance and auto insurance policy with the same company could save hundreds or thousands of dollars a year. Best of all, many insurance companies are willing to give you discounts on your other policies as well. Price shop other insurance companies and notify your current insurance company that you have found a better price elsewhere. You may be able to save money simply by asking for a discount.

Ask for a Discount

Customers should always ask for a discount. Many companies may deny a discount or only apply a small discount to your account. However, customers may be eligible to save hundreds or thousands of dollars a year. Often a customer has to make a simple phone call that takes less then ten minutes in order to save a large amount of money.

Avoid Coverage for Rental Car Reimbursement or Towing

Drivers should strongly reconsider adding rental car reimbursement or towing coverage to their policy. Many drivers may already have a credit card that covers them in the event of their vehicle breaking down. Check with your credit card carrier for more information to determine whether you truly need this coverage.

Tips to Remember

Drivers should remember to check with their insurance agency about all of the tips that are mentioned above. Many drivers are able to save hundreds of dollars a year on their auto insurance premiums. Cost savings can add up quickly when drivers raise deductibles, drop coverage and simply ask for a discount. Customers should always remember that the insurance market is very competitive and there are many car insurance companies who are willing to give you a quote for cheaper insurance rates.

Image by: Andrew Dallos