Save On Insurance With These Four Steps
Yesterday I got the bill to renew my auto insurance and my head almost exploded. I swear it has doubled in price while my car has gotten older and my driving record has stayed clean. Plus I own my car free and clear AND work in my living room. I should be a DREAM person to insure.
So my job is to see if I am getting ripped off and look for some new insurance options. So I wanted to save on insurance with these four steps!
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Save On Insurance With These Four Steps
While it’s necessary to have auto insurance (assuming you have a car), the cost can really add up. There’s a good chance that you’re probably overpaying and you may not even realize it- especially if you have had the same company for years. There are things you can do to help lower the monthly/semi-annual cost.
- Do Some Comparison Shopping
Before settling on an insurance company, be sure to do some comparison shopping. Many people settle for a company without seeing if other companies can offer them a lower rate. This can end up costing you many extra dollars every year. Use an online car insurance comparison website, such as Esurance.com, to see what rates different companies have to offer. Or ask your friends if they know an insurance broker- someone who works for ALL the companies and can recommend the best deal.
- Consider Opting for a Higher Deductible
Many people opt for lower deductibles because high deductibles seem overwhelming. If you’re looking to save money, however, you may want to consider doing the opposite. A higher deductible will mean paying more upfront in the event that you do get into an accident, but it will also mean lowering your monthly premiums. This is a benefit to having a nice savings account- if you have $1,000 to put toward replacing a fender or fixing a door, you can really lower your payments.
- Look into Insurance Bundles
If you also pay for home insurance (or renters insurance etc), you may want to look into a bundle package. Many insurance companies offer home and auto insurance bundles. Other types of insurance may also be included. Bundle packages often come with steep discounts, which can make them a worthwhile option if you’re trying to save money on the cost of your insurance.
Another type of bundle you may want to look into is a multiple vehicle bundle. If you and other members of your family purchase car insurance from the same company, you may be able to lower the cost by doing a multiple vehicle insurance bundle. I know my parents and I did this until I hit 25 and was finally able to move over at a reasonable rate.
- Consider What Discounts Are Available to You
Many auto insurance companies offer discounts you may not be aware of. Taking driver’s education classes while you’re in high school or through a private driving company can help lower the insurance cost. Some companies offer discounts to military, non-smokers, college students and people who keep their mileage at a minimum. To find out what discounts you may qualify for, be sure to contact your insurance company. The insurance I got today actually gave me an additional discount for paying with PayPal! I never would have thought in a million years.
What Insurance Decision Did I Make?
The bill I received yesterday was $412. I was able to get the exact same coverage from another company for $288. So I saved $124 by visiting an insurance comparison site and switching to a different company. For me what made the difference was the discounts- some of the “new customer” discounts will go away in six months when I go to renew so I may have to revisit this post again!
These are just a few of the things you can do to lower the cost of your auto insurance. Another thing you will want to keep in mind is that car insurance rates are also dependent upon your driving record. Driving at the speed limit and leaving your cell phone alone can help you avoid getting a ticket or getting into an accident.
Sometimes you can also get discounts for paying in full for either 6months or a full year. A 2, 3, 4 or monthly pay plan (on 6 month policy) can have a $5 fee for each payment! (Sometimes on the monthly iit’ll drop to $2-3 if you have direct pay, but payment in full eliminates the fee entirely!)
You may also get a persisting customer discount after 1 year, depending on your state, I know CA has it! So not all of the new customer stuff goes away, it may change!
Any ideas for cheaper teen insurance? I know the good student one but his will still be 170 a month. Gah