When times get tough, financial trade-offs are inevitable. One area where consumers may be looking to save as much as possible is their car insurance. And like most things, there's a right and a wrong way to go about it.
Yes, you may save money in the short run by changing your policy. However, eliminating coverage from your plan may put you in a bigger financial hole in the case of an accident, and you should always think through important factors like things such as how far, how much, and what type of vehicle you drive.
This 3-step, 10-minute plan is designed to not only help you save money on auto insurance, but also stay protected:
Step 1: Think Long Term
Think of the Long-Haul - Most insurance companies think in the long-term too, and they prove it by offering additional benefits to long-time, loyal customers. Drivers thinking of switching insurance providers just to save on their monthly payment should first check with their insurance provider to see about any additional savings they may soon be eligible for.
Step 2: Delve into Discounts
Apply the Rule of Safety in Numbers - While insurance companies have their own set of numbers that they use to evaluate the potential risk of individual drivers, there are ways to make the numbers work for you by consolidating. This applies in a number of areas such as:
Carpooling - Drivers who ride with others to work can often benefit from low mileage discounts on their policies.
Step 3: Pay Wisely
Don't Delay When You Pay - Believe it or not, paying your bills on time can actually have a bearing on the cost of your auto insurance. That's because your credit score is an important factor in determining your auto insurance rates. And that means the bill-paying balancing act may actually cost you more on auto insurance. If you find yourself having to make the best of a challenging financial decision, try raising the deductible on your policy. Increasing a deductible from $250 to $500, for instance, could reduce the collision and comprehensive coverage premium by 15 to 30 percent while keeping you protected in the case of an accident. However, drivers should be prepared to pay the amount of the deductible should something happen to their car.
Celebrating nearly 200 years of business, The Hartford (NYSE: HIG) is an insurance-based financial services company that serves households, businesses and employees by helping to protect their assets and income from risks, and by managing wealth and retirement needs. To learn more about The Hartford's auto insurance products, consumers can visit www.hartfordauto.com
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