Lowering Auto Insurance Costs
Auto insurance is an inevitable cost if you want to drive. Driving without insurance isn’t just a bad idea — it’s illegal. This doesn’t, however, mean you need to pay top-dollar for your insurance premiums. With a little research and a willingness to haggle, you can obtain quality auto insurance at affordable prices.
Increase Your Deductibles
Raising your deductible is a time-honored method of lowering insurance premiums. Most of us have a minimum amount we’d have to pay in damages before we contacted an insurance company. Why have a $500 deductible if you’d only make claims on more than $700 worth of damages?
One caveat on deductible increases: While your annual premiums will be lower, be sure to save for repairs for any damage lower than your deductible limit.
Don’t Just Shop Around
Comparison shopping is an important means for finding the best quality insurance at the lowest price. Don’t quietly comparison shop, however; auto insurance is a very competitive business. Call individual insurance companies and make it clear you’re comparison shopping. Ask for their best offers.
Keep track of the different offers. Before you make a final decision, call companies back and ask whether they’ll match or beat a competitor’s quote. Often agents are willing to offer extra incentives to seal a deal.
Package Rates
Insurance companies want your business — I think it’s fair to say we’ve established that. The more business you bring, the more likely the companies are to offer discounts. If you’re willing to use the same company for auto, travel and home insurance, the company should offer incentives or lower premiums in return.
Group Rates
Insurance companies often offer discounts and special rates for specific groups of people. If you’re a member of a professional organization or a college alumnus, check with the group to see if they have membership deals with insurance companies.
Black Box Insurance
If you’re okay with the idea of our auto insurance provider riding shotgun, consider black box insurance. Policy holders agree to have a GPS device (the black box) installed in their vehicle. The insurance company uses information from the GPS to evaluate your driving habits and how much of an insurance risk you are.
Black box insurance is a great idea for careful or infrequent drivers, as they benefit from their safer driving habits. Drivers who do 55 in school zones, however, aren’t big fans of the new technology.
Review Renewed Policies
Company policies, fees and service quality change over time, not matter whether you’re looking at retail, addition rehab centers or the insurance industry. With this in mind, always review your renewal policy, comparing it to the previous year’s agreement.
Are you still receiving the same discounts? Has the premium gone up without warning? Call the insurance company and ask for an explanation if anything changes. While you’re on the phone, ask if you’re eligible for any other discounts you may not know about.
Check your policy to make sure all you information is up-to-date. The type of car you drive, security features such as car alarms and even your marital status can affect premium rates.
Category: Car Insurance
