Save Money On Car Insurance Right Now!

May 29, 2017 · Posted in General Articles on Car Insurance 
by Victoria Cathey

Everybody hates bills, so why should car insurance premiums be any different. And just like other bills, such as cable, grocery shopping, and electricity, there are ways to save on the cost of car insurance. Listed below are 15 realistic approaches to help everyone reduce their premiums.

Multiple line discount – insure all cars and homes with the same insurance company to receive a discount

Limit Your Driving – If you work from home or were recently laid off, tell your agent. Many companies will reduce your premium if you drive less than 100 miles per week (varies by insurance agency).

Safe Driving Discount – You might qualify for a rate reduction if you have been accident-free for several years.

Increase your deductible – A deductible increased from $250 to $500 can save a family hundreds of dollars a year. However, if you increase your deductible, make sure you have the extra $250 if you have to file a claim.

Shop around — when your premium goes up, let your agent know you are looking; chances are they will find some other discounts.

Under 25 parent discount – At the age of 25, car insurance premiums decrease because insurance companies feel the driver is now more experienced. However, parents under the age of 25, will also receive this discount because the insurance companies feel a parent is more responsible. Note: you will not receive another reduction once you turn 25.

Full coverage or liability – determine if full coverage is still needed by checking the blue book value of your car at Kelley Blue Book. If the value of your car is worth more than the cost to repair it, keep full coverage, if not, drop down to liability.

Get quotes before buying a new car – The make, model and color of a car will influence your premium cost. So before you go out to purchase that red sports car, or black Hummer, check with your insurance agent, the increase in policy price might scare you. Also, certain cars are stolen more often for their parts and increase the cost of the premium.

Avoid short-term policies – Penalties are often applied, think long-term

Avoid lapses in your insurance – If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.

Only insure cars that are driven – Cars that are inoperable do not need to be insured. To avoid any complications or penalties with your state, make sure your car is registered as ‘inoperable’.

Refresh your driving skills – Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.

Don’t hit anything or get a ticket – Your fault or not, this can increase your policy rate for several years. Keep your eyes on the road. Avoid tickets. Speeding tickets and other moving violations can push your rates up substantially and these, like accidents, usually affect your insurance for 3-5 years.

Don’t insure teenager driver with your car – Premiums for a teenager driver is through the roof. Instead, purchase a safe, used car and only purchase liability. You will save hundreds of dollars.

Have a high FICA score – Many insurance companies are now factoring in ones credit scores to calculate premium cost. A person with a high credit score is rewarded with a lower premium and a person with a low credit score will be punished with a high premium.

Pay semi-annually – This is my favorite way to save money on car insurance. Instead of paying your car insurance monthly, pay semi-annually. The 1st payment is the hardest because you will have to pay the full amount to cover the first six months; think ahead and start saving for this switch. Once you have paid your 1st six month premium, automatically transfer the monthly premium payment into a high yield savings account to earn interest until semi-annual payment is due. By doing this not only are you saving money by avoiding the monthly surcharge fee you are also making money off of interest.

Out of the 15 options listed above, I hope at least one of them will help you save money on your car insurance.

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