Tips Getting The Best Deal on Auto Insurance
Introduction
Some things are just no fun to spend money on -- until you need them. Auto insurance is a necessary evil, required by law in almost all states. If you’re lucky, you’ll pay the premiums year after year without ever getting anything in return -- you won’t have an accident and no one will steal your car. But this doesn’t mean that you have to pay top dollar for the assurance that if something bad does happen, your insurance company will pick up most of the tab.
Be A Smart Shopper
Before you start shopping for lower car insurance rates, take a look at your credit report. A lot of auto insurance companies base their premiums in part on the way a driver handles credit. Insurance companies don’t actually use your credit score -- they make their own calculations for an “insurance score” based on information in your report. But they typically only do this once, when you apply for a new policy. If your report contains negative information resulting from events that have occurred since you got your current policy, another insurer could offer you higher premiums.
Increase Your Deductible
If you have a $250 deductible and you’re involved in an accident, that $250 is the extent of your liability. Your insurance company pays the balance. But if you’re willing to kick in more out of your own pocket if something goes wrong, your premiums will go down. Unless you're very unlucky, paying a higher deductible in the event of an accident will be a one-time deal -- most drivers make collision-related claims only once every 18 years or so. If you pay higher premiums over the course of 18 years, it will add up to a lot more than your deductible. If you want to see about lowering your deductible, start searching for new coverage today.
Take Advantage of Discounts
Insurance companies want customers who never make claims, so they offer discounts to attract drivers who are less likely to do so. Ask your insurer about any discounts it offers. Common ones include those for vehicles equipped with antitheft devices or special safety features. Some companies offer discounts if you work at home or not very far from home so that your commute is minimal. If you’re over 55, this sometimes ratchets up your premium a bit, so ask about any discounts available if you take a defensive-driving course.
Change Your Coverage
Take a look at your policy and the coverage you’re paying for. You may not need all of it. If you’re carrying comprehensive and collision coverage on an older car, you might be spending more on insurance each year than the car is worth. Most states require that you carry liability coverage to protect other drivers if you’re in an accident, but comprehensive coverage pays out if your car is stolen or damaged in some event unrelated to an auto accident. Collision coverage pays for repairs to your car if you are in an accident. If you’re paying a lot for these perks but your car isn’t worth that much, you might consider canceling the coverage. But note that if your car is stolen or destroyed, you won’t receive an insurance check with which to replace it.
Monitor Your Teen Driver
Teenage drivers are expensive to insure, because they’re statistically more likely to have accidents. If you have a teenager who’s just gotten her driver’s license, take steps to mitigate the increase. Some insurers will give you a break if she takes a safe-driving course. Depending on your insurer, she can often accomplish this online; some companies even provide driving simulations to help hone driving skills. Others may provide DVDs, or she can read a specified book then take a quiz. Many insurers offer discounts if your teen has good grades, maintaining a B average or above. But if she's in college, she might be required to carry at least 12 credits to qualify. Another option is to install a GPS device in your teen's vehicle that will monitor her driving habits -- some companies will give you a break on premiums for this, as well. You can access her driving information online or receive text message reports or emails. Insurers feel that if the teen knows she's being monitored, she's more likely to drive safely.
Shop Around
Making sure you have the right coverage for the right price should always be the top priority. Start shopping now to see if any of these tips can help save you money on your car insurance.
it Tips Getting The Best Deal on Auto Insurance.