Everybody hates bills, so why should car insurance premiums be any different. And just like other bills, such as cable, grocery shopping, and electricity, there are ways to save on the cost of car insurance. Listed below are 15 realistic approaches to help everyone reduce their premiums.
Multiple line discount – insure all cars and homes with the same insurance company to receive a discount
Drive Less – If you were laid off or work from home, tell you agent. The distance that you have to drive varies by agency, but with State Farm you will receive a discount if you drive less than 100 miles per week.
Discount for Safe Driver – You might be eligible for a rate reduction if you have not been in an accident or received a ticket for several years.
Increase your deductible – A deductible increased from $250 to $500 can save a family hundreds of dollars a year. However, if you increase your deductible, make sure you have the extra $250 if you have to file a claim.
Shop around for deals – Tell you agent you are shopping around for cheaper premiums. If you are valued customer, your agent should re-evaluate your policy and look for ways to reduce your premium.
Update agent if you are a parent under the age of 25 – You might receive the same rate reduction given at the age of 25. However, you will not receive another deduction once you turn 25.
Full coverage or liability – You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.
Talk to your agent before buying a new car – The shiny red sports car and the gadget filled luxury car might look good on the dealership floor, but the premiums might cost an arm and a leg. Check prices with your insurance agent to help you make the best decision.
Don’t buy short-term policies – There might be a penalty so buy long-term.
Don’t let your insurance lapse – A lapsed insurance policy indicates irresponsibility and high-risk. Avoid this at all cost. When you are ready to renew you will notice that your cost will have jumped tremendously.
Only insure cars that are driven – Cars that are inoperable do not need to be insured. To avoid any complications or penalties with your state, make sure your car is registered as ‘inoperable’.
Refresh your driving skills – Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.
Don’t hit anything or get a ticket – Your fault or not, this can increase your policy rate for several years. Keep your eyes on the road. Avoid tickets. Speeding tickets and other moving violations can push your rates up substantially and these, like accidents, usually affect your insurance for 3-5 years.
Don’t let your teenager drive your car – Teenagers are viewed as inexperienced drivers and cost a small fortune to insure. Instead of letting them drive your car, purchase a reliable used car and only get liability.
Have a high FICA score – Many insurance companies are now factoring in ones credit scores to calculate premium cost. A person with a high credit score is rewarded with a lower premium and a person with a low credit score will be punished with a high premium.
Pay semi-annually – This is my favorite!! A surcharge fee is generally applied to customers who pay monthly. This fee is easily avoided by paying semi-annually. Begin to save up enough money to make the 1st semi-annual payment. After you make that payment, automatically transfer the monthly insurance payment into a high-yield savings account to earn interest. When you receive your semi-annual bill, pull money from your high-yield savings account to cover your premium cost. Any money earned from interest is profit.
Out of the 15 options listed above, I hope at least one of them will help you save money on your car insurance.
