Five Tips to Save on Auto Insurance Right Now
by admin on 27/10/09 at 4:20 pm
With the economy still struggling, everyone is looking for a low auto insurance rate. The insurance industry is a competitive one so there are dozens of companies competing for your business. This works to your advantage if you take a little time to shop around and compare car insurance rates.
Finding very cheap car insurance is not as difficult as you might think. Here are five tips to help you save money:
- Increase your deductible. If you have an older car and are comfortable with the idea of potentially paying more out of your pocket in the event of an accident, increasing your auto insurance deductible can be a great way to save money. In many cases, the money you save on your policy will more than make up for the increased out-of-pocket costs that you may incur if you crash or have a theft.
- Check your car model. The type of car you drive has a big impact on your insurance costs. The Highway Loss Data Institute maintains a database of the insurance costs of every car make and model. Even small differences in models like a 2 door vs. a 4 door can make a big difference in your auto insurance rate. If you are thinking about buying a car, researching the costs of insuring your vehicle before you buy it could save you a lot of money.
- Bundle your insurance. One way to get really cheap car insurance is to maintain your auto policy with the same insurer that you use for your homeowner’s policy. Insurance carriers often give significant discounts for customers who have more than one policy with them. Likewise, if you own more than one car, keeping both policies with the same auto insurance company should save you money.
- Ask for discounts. Most auto insurers have a variety of discounts available, but in many cases you have to ask for them. If you have a clean driving record you should be able to get a good driver’s discount. If you don’t drive your car very far each year, you should be entitled to a low mileage discount. One way to get cheap car insurance for young drivers and teenagers is to maintain a good grade point average. Students who maintain high GPAs are viewed as more responsible, lower risk drivers and can often get a discount on auto insurance.
- Shop around. Perhaps the single most important thing you can do as a consumer to save money on your auto insurance is to compare rates from multiple companies. Each insurer has a different focus and different rules when it comes to insuring drivers. Some insurers will shun high risk drivers while other companies specialize in this. With so many car insurance companies, there’s no reason not to compare rates from at least three to five insurers.
If you follow these tips you could be saving hundreds of dollars on your annual auto insurance policy. So stop paying too much for car insurance and start saving.
