8 Ways to Save on Auto Insurance
by Vernon Williams
Save on Auto Insurance by Driving Less
Switching Auto Insurance
How Much Car Insurance Do You Really Need?
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%.
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:
- Stop struggling to get ahead financially. Subscribe to our free weekly Surviving Tough Times newsletter aimed at helping you 'live better...for less'. Each issue features great ways to help you stretch your dollars and make the most of your resources. Subscribers get a copy of Are You Heading for Debt Trouble? A Simple Checklist And What You Can Do About It for FREE!
Share your thoughts about this article with the editor: Click Here
More Money-Saving Tips for Your Home
- Should I use a HELOC for home remodeling and repairs?
- Find the best mortgage rates in your area
- Check for a lower homeowners insurance rate
- 3 ways to use a mortgage calculator
- Mortgage calculator: Calculate your payment and more
- Home equity calculator: HELOC vs. line of credit
- How much can additional payments save me on my mortgage?