Review, Reconsider, Reduce, And More: How to Save on Car Insurance
You may be leaving money on the table if you haven’t examined your car insurance coverage lately. It’s typical for people to overpay for this coverage, especially if you haven’t analyzed your protection and the options available to you. Different factors will combine to determine what you might pay.
Request a Review
If you’ve had a clean driving record for some time and haven’t had any accidents or traffic citations, you might be eligible for a premium reduction based on your exemplary record. Similarly, people with good credit ratings often receive lower premium quotes because better credit ratings indicate a higher level of responsibility. Ask your agent to review your account to see if you are eligible for a rate reduction based on your driving record or your credit score.
Reconsider Your Deductible
If your current deductible is low, you can protect yourself from out-of-pocket expenses. However, you might decide that you’re willing to run the risk of some expenses in exchange for a lower premium. While this can be risky, if you and everyone covered on your policy are experienced and safe drivers with solid driving histories, this can be an effective way to reduce your expenses because of the lower likelihood that you will be involved in accidents.
Reduce Your Driving
Many companies track customers’ mileage and base premiums on the number of miles people drive. If you can reduce the number of miles you drive, your car insurance premiums may fall. Carpooling can be one effective way to reduce the number of miles you drive. You may also lower your mileage by using public transportation and other forms of transportation such as biking or walking. Sometimes just combining errands and monitoring how you use your vehicles can lower your driving mileage.
Eliminate Forms of Coverage
With a late model vehicle, you will need collision coverage to protect you from loss in connection with an auto accident. Collision coverage will also pay you the value of your automobile if it is a total loss. As a vehicle ages, it depreciates in value. For this reason, this protection may not be worth the expense because the amount paid to you by the company would be nominal due to the reduced value. Comprehensive coverage is protection against loss from incidents unrelated to accidents, such as weather damage. Consider dropping collision and/or comprehensive coverage to reduce your premiums, as long as you are willing to pay for any damage yourself.
Many companies offer different types of policies to protect customers from loss in a variety of areas, such as renter’s, homeowner’s, and health insurance. If you need additional coverage for other areas of your life, consider bundling all of your insurance policies from one company. Customers who practice this bundling often receive extra volume discounts, which can save significant money.
Car insurance is a necessary expense, but don’t pay more than you need to pay to protect yourself from loss. A little effort might enable you to save money.