Many people ask me how they can save money on their auto insurance. Let’s face it, it’s a necessary expense that we’d all love to pay as little as possible. What I want to do in this article is give you some tips to save money on your car insurance.
Before I get into this, I want to help you get a realistic view of what you’re looking at. Your insurance premiums will definitely be influenced simply by who you are. For example, all insurance companies look at certain things, like your age, gender, and definitely your driving record. If you are a man under the age of 25, your premiums will always be higher than those of a woman over the age of 30, unless your driving record is terrible. Now that we’ve cleared that up, here are 3 tips to lower your insurance premiums.
The first way is a way that I am going to suggest is to simply increase your deductible. This option is better for some drivers than others. For example, if you’re someone who can afford a $1,000 deductible and you’re a fairly safe driver, why pay a premium increase to have a lower deductible if it won’t affect you one way or the other? If you have an accident that has $700 in damages and you have a $500 deductible, the insurance company will pay $200 on that claim and you will pay the other $500. If your deductible is $1,000, you’ll only pay $200 more anyway. You’ve probably already saved that much on premiums depending on how long you’ve had your current coverage anyway. Again, this option is certainly not for everyone. In many cases, the lower deductible is more appropriate. I will, however, make the suggestion that anything less than $500 is not necessary for the simple fact that if you make a $250 claim on your insurance because you have a $100 deductible, you will probably have higher rates with that company and any another company you decide. to switch to something that probably could have paid for itself.
Another way to save money on your car insurance is to buy safe vehicles. If you have vehicles that are known for their safety ratings and have things like airbags and anti-lock brakes, your insurance premiums reflect that, too. So even when you’re shopping for your vehicle, you have the potential to save some money on your insurance rates. Although most things now come standard on vehicles, some cars will continue to have lower rates than others. A minivan is likely to get a better rating than a corvette. I think you get the point in this advice.
The last way I suggest won’t work for everyone because some people still have loans on their vehicles and all lien holders take it very seriously that we have full coverage insurance on our vehicles while they still have paper on them. But for vehicles on your policy that are fully paid for, you can cancel your collision and comprehensive coverage to save some money. However, I would never suggest in a big city that you drop your uninsured or underinsured motorist coverage. But if your vehicle’s value has dropped and your deductible is getting to the point where it’s about the same cost as the car’s value, it’s probably not worth paying for full coverage anymore.