Top
ways to save on car insurance - Slashing your premiums
Determine the
costs of insuring a vehicle in question before buying it -
You may have to make an alternative choice if the premiums
are too high for you to accommodate financially.
Top
ways to save:
1)
Shop multiple insurance companies.
This is probably
the most important step. Different companies charge different
premiums. The easiest way to accomplish this task is to use
online resources. Many of the online resources included in
this section boast a minimum savings of $300 per year on insurance
policies. The fastest and most reliable insurance services
online are
iNSWEB,
 Nationwide
Insurance, and the Canadian source Kanetix .
As you will see,
the main benefits of shopping online are maximum savings combined
with a hassle free and quick shopping experience. You are
also under no obligation to accept a quote and all quotes
are e-mailed to you - no over the phone sales pressure. You
can literally shop several insurance companies in less than
an hour on all of the vehicles you are considering.
2)
Select the proper vehicle.
Consider a vehicle
that has many safety features and anti-theft devices. If a
vehicle is prone to theft or is not safe, your premiums will
go up. Instead of researching many cars for this information
individually, consider using the above resources and getting
quotes. Money talks and an actual quote is the best way to
determine affordability.
3)
Provide all the necessary personal information
Do not leave out
any personal information when getting quotes. Insurance companies
give better rates if you have certain criteria that they think
is important. Inquire into discounts that may be granted for
criteria such as:
- Insuring more
than one car;
- No accidents
in three years;
- No accidents
ever;
- Drivers over
50 years of age;
- Driver training
courses;
- Good grades
for students;
- Low mileage
discounts;
- College student
living at least 100 miles away from home without a car on
campus;
- Not smoking;
- Not drinking;
- Serving in
the armed forces (past or present);
- Ignition cutoff
system and/or a hood or wheel-locking device;
- Being a doctor,
lawyer, farmer, or member of a profession that the insurance
company regards as a good risk;
- Being female
and the only driver in the household; or
- Renewing for
longer than a year
4)
Change the way you drive
How much you
drive can affect your premiums. The more time on the road
you spend, the higher a risk you are. Consider utilizing public
transit to decrease total driving mileage, which may assist
in reducing premiums. Consider car-pooling to save money as
well.
5)
Consolidate your insurance
Try to keep all
insurance policies under the roof of one carrier, as they
will often offer a multi-policy discount. When getting insurance
quotes, combine all your insurance needs with one company.
This can save you money across the full range of insurance
needs. Ensure that the policy limits cover all the drivers
in the household, and that the limits are not so low to leave
the individual open to lawsuits and financial ruin.
6)
Raise your deductible
Raising the deductible
on the amount the individual self-insures by a total of $200-$500
will decrease the Collision/Comprehensive price tag by up
to one-third. Raise the deductibles to the maximum amount
you can afford will lower premiums.
7)
Avoid duplicate medical coverage
If you have an
adequate comprehensive health insurance plan, you should consider
dropping the of medical expense coverage from your auto insurance
policy. This could lower your premium by up to 40%.
8)
Drop collision and comprehensive on older cars
You may wish to
drop collision and/or comprehensive coverage on older cars.
(Collision coverage takes care of the cost of repairing your
car if you are in an accident, regardless of who's at fault;
comprehensive pays if your car is stolen or damaged by fire,
flood, hail or wind.) If your car is not worth much, why pay
a premium for repairs on a vehicle you will probably replace
if it's badly damaged? Collision damage for an older car can
cost more than the car is worth
9)
Drive carefully
Finally, at the
risk of being obvious, drive carefully. Accidents can greatly
increase your premiums as well as cause the insurance company
to refuse to renew (or, in serious cases, to cancel) your
policy.
Consumers should
use these tips and do their homework before taking the plunge,
and they will get the most complete coverage without putting
a dent in their bank accounts.
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