In the current economic climate, we’re all trying to save pennies where we can. Unfortunately, for some people, that means scrimping on auto insurance, even though it’s not only an important form of financial protection, but also required by law throughout the country. The good news is that there are many ways you can find affordable car insurance. Here are just a few:
Shop Online and Compare: Studies have shown that people who shop for their car insurance online save 25% more than people who use the telephone and/or face-to-face interviews with agents as their sole method of collecting quotes and comparing companies. For that matter, while you are shopping online, be certain that you request quotes from three to five different companies and compare them line-by-line. Every insurance company has slightly different pricing even for products that seem the same, so comparison shopping is key.
Bundle Home and Auto Coverage: If you own a house or condo, or even if you carry renters insurance on the contents of your apartment, you can save money on your car insurance by bundling it with your homeowner’s coverage. Not only will you receive a discount on your car insurance for doing so, but you’ll also get the added benefit of having only one company to deal with if something goes wrong. You can save even more if you also add a life insurance policy, something most people need anyway, with the same insurer.
Multi-Car Discounts: If you and your spouse or partner each have a car, be sure to consider putting them on one policy. You’ll save money on the second car, and if you ever add a motorcycle or have a teenager who needs their own car, you can add those vehicles to the same policy as well.
Low-Mileage Discount: If you work from home, or not far from your office you should ask about a low mileage discount. Even without adding a pay-as-you-drive program (which often requires a tracking device being added to your car) you’ll save money if you typically drive fewer than 14,000 miles a year.
Defensive Driving Classes: These are the discounts that keep on giving. If you take a hands-on defensive driving class from a certified instructor, you can get a car insurance discount of up to five percent for up to three years. That’s pretty good in and of itself, but here’s what’s even better: when that initial three year period is over, you can take another class and get a new discount!
Raise Your Deductible: This is actually the easiest way to make your car insurance affordable, because the higher your deductible, the lower your premium. The catch is that you need to be able to pay the higher deductible if you ever file a claim, so only raise your deductible to a point you can afford, or make an effort to put the money you save on insurance into a savings account.
As you can see, there are many ways to find affordable car insurance. The methods above only scratch the surface of the discounts and savings methods that are available. When you get a quote that you like and are ready to speak to an agent and finalize the purchase of a policy, be sure to ask if there are any other ways you can save. You might be pleasantly surprised.
No Comments »