8 Ways to Save on Auto Insurance
by Vernon Williams
Home
Home and Auto
Insurance
Auto
8 Ways to Save on Auto Insurance
1. Raise your deductible.
A deductible represents the amount of money you pay before the insurance company pays a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision cost by as much as 30%. Since the national average annual premium is $687, this can save you $206 per year.
2. Drop collision and/or comprehensive coverage on old cars.
If your car is totaled in an accident, you receive the cash value of the car. Although insurance companies use their own criteria to make this determination, you can get a ballpark estimate from www.kellybluebook.com. If your car is 5 years old or older, it may make sense to cancel the collision and/or comprehensive and bank the savings.
3. Avoid duplicate medical coverage.
If you have adequate health insurance, you may be paying for duplicate medical coverage in your auto policy. In some states, eliminating personal injury protection (PIP) can lower your premium by up to 40%.
4. Drive a "low-profile" car.
Before you buy a car, check into the insurance costs. Cars that are expensive to repair or are favorite targets for thieves have much higher insurance costs.To see how a car you are considering purchasing is rated, go to iihs.org and read "Insurance Losses by Make and Model."
5. Drive less.
Some companies offer discounts to motorists who drive less than a predetermined number of miles a year. Consider using public transportation, a carpool or vanpool to commute to work.
6. Ask for a multi-policy discount.
Some companies give a discount if you have more than one policy with them.
7. Ask for a discount based on your credit score.
Some companies use the credit score to establish premiums. If you have a high credit score, ask for a discount.
8. Comparison shop.
Prices for the same coverage can vary by hundreds of dollars, so it pays to shop around.
With over 20 years of experience as a personal financial educator and counselor, Vernon Williams has developed in depth knowledge of what it takes to achieve financial success. Today, he is a sought after trainer and speaker by organizations from both the public and private sector. He is the author of 425 Ways to Stretch Your $$$$ and 3 Rules that Guarantee Financial Success.
Take the Next Step
- Subscribe to our weekly "Surviving Tough Times" newsletter by sending an email to
subscribe-InflationFighters@hub.thedollarstretcher.com.
This free html newsletter will provide ways to survive in this challenging economy. Each issue features nine articles to help you stretch your dollar!
Share your thoughts about this article with the editor: Click Here
Do you need more information on this topic? Click here to ask a Dollar Stretcher Stretchpert!
Do you have a time or money saving idea that wasn't included in this article? Please send it to tips@stretcher.com. We get the best ideas from our readers!
If you liked this article, sign up for our free eNewsletter Surviving Tough Times. Just enter your email address in the box below and click Subscribe.
Follow The Dollar Stretcher on Twitter.
Dollar Stretcher Community
Forums
Blogs
Also In This Week's Issue
Money games for kids
10 hot toys for under $20
How repossession affects credit score
Marriage doesn't wipe out credit history
