Find the best penny-pinching premium price.
- Shop around. For comparing prices online see CarInsurance.com., but remember, it costs companies to advertise on this kind of website, so the cheapest companies may be saving and not be listed here—so….
- Go to your state’s Department of Insurance Website. Here you can find a range of prices for car insurance as well as look at insurance companies’ complaint records. You don’t have to sacrifice service for price; lots of lower priced companies like GEICO and All State have low rates and good service.
- Shop around each year or so. Newcomers to companies often get better deals. For example, AllState offers $100 off your deductible the day you sign up with them! If you find a better deal, you can then negotiate with the company you have for a lower rate.
Make sure you know about all the discounts. There are
- Senior discounts
- Low mileage discounts
- Good student discounts
- Discounts for cars with special safety features like anti-theft systems
- Discounts for professional groups like teachers and engineers
- Discounts for organization members like members of veterans groups or members of AARP.
Be wise about what you insure and how you insure.
- The kind of car you drive makes a difference in your car insurance rates. The older, more utilitarian, and cheaper the car, the less it costs to insure. If the car is new, sporty, and expensive, you will pay more. If you can narrow your choice down to 2 to 3 cars, call your insurance agent and find out what the difference is to insure each car and choose based on this information.
- Collision insurance protects you against damage to your car, and comprehensive insurance protects against theft. Many times you do not need this insurance, especially if your car is older. First, these insurances only reimburse you for the resale value of the car. Second, they are rarely used. (For example, a car is damaged to the point of being totaled only once in 50 years.) Take the value of your car. If it is less than the price of your comp and collision added together and multiplied by 10, you should not purchase this insurance.
- Finally, consider your deductibles. If you can afford some out-of-pocket at a time when something does happen, then you can save on the yearly cost of your insurance. Changing a $250 deductible to a $1,000 deductible can save between 25% to 40% on the overall cost of your car insurance.
And, be wise in general!
- Keep a good driving record.
- Have good credit.
- Don’t let your insurance lapse because of non payment or because you have not arranged new insurance before dropping your old insurance.
- Pay your premium up front and avoid monthly installment charges.
- Combine your home insurance with your car insurance for better rates.
- Notify your insurance agent of changes that can affect the price of your insurance. For example, if you have a teenager who has left the house or gone away to school, even if s/he may drive your car but not regularly, you can get a lower rate.
- Never pinch on liability insurance. You can be sued if you are in an accident with someone else. What you are buying is protection against a suit, legitimate or not. Although states require a minimum of coverage, you need to make sure your assets are covered, which include the value of your home, your investments, and your potential earning power.
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