If you feel like you’re paying too much for your auto insurance you probably are. If you haven’t priced out your insurance for a while you’re also probably paying too much. There are several easy steps that you can take to reduce your auto insurance costs.
Multiple Policies– Most insurance companies offer discounts if you carry all your insurance (home/renters, life insurance, etc) through them. If you haven’t consolidated all of your insurance in a single company doing so could save you up to 15%.
Forgo Some Coverage– Take a look through your current policy. You may be getting coverage for items that you’ll never use. One example of an item you’ll want to drop is collision on an older car.
Drive Less– If you drive less than 7,500 miles a year you may be eligible for your insurance companies low mileage discount. Call your insurance provider and ask if they offer this. The typical low mileage discount is 10%-15%.
Pay in Advance– Some insurance companies will offer a discount if you pay your insurance 6 months in advance. Other insurance companies will charge you a fee if you’re paying monthly. If you’re paying your insurance on a monthly basis check with your provider to see if you can save any money by paying in advance.
Drive Carefully– This one’s pretty obvious. Insurance companies will up your premiums if you have a history of accidents or moving violations.
Raise Your Deductible– If you have a low deductible ($100 or $200 is very low) you should consider raising that deductible to $500 or even $1000. This can help save you 50% or even more on your premium. This is especially beneficial for safe drivers who are rarely in accidents, since they’re unlikely to have an accident in any given year.
Shop Around– Make sure that you’re getting multiple quotes for your insurance. There are a lot of insurance companies out there and they compete against each other. If you haven’t priced your insurance in a while it’s a good time to do so. Switching could save you $100’s.
Ask your HR Department– Insurance companies will partner with local business and offer discounts to their employees. Checking to see if a local insurance agency has a preexisting relationship with your company may net you a 10% discount.
There are lots of ways to save money on your auto insurance. Figure out what type of policy that you want and any type of discounts that you might be eligible for. Once you know that shop around.