how to save money on car insurance

Facebooktwittergoogle_pluspinterestrsstumblrFacebooktwittergoogle_pluspinterestrsstumblr

How to save money on car insurance

  • Most states require you to have car insurance (if you own or drive a car).
  • Car insurance can be very expensive, but it does not have to be.

    save money on car insurance

    Most people spend to much for car insurance. Read this article to learn how to save money for car insurance

The spread for the of cost for car insurance is amazing. If you compare the price of car insurance from one company to another, you’d think their prices would be the same (ish), but they’re not. For the same coverage, I find there are large price differences from one company to another. This article will show you how to save money on car insurance.
Shop around
Your car insurance is going to expire soon, and you need to renew it. Pick up the phone, or get on the internet. Search for the company with the lowest premium. When you do this, make sure you are talking the same coverage limits, liabilities, and deductible. You’ll, probably, be able to find a rate that is lower than what you are paying now.
The real savings come as you as you conform to certain standards.
Age and sex
Age and sex play a (big) part in determining the rate for your monthly premiums. There is nothing you can do about your age or sex. So, concentrate on what you can change and control—your lifestyle.
Lifestyle
If you hang around this blog much; you’ll see I frequently refer to “lifestyle”. In order to get the lowest car insurance premiums you need to adhere to a set of rules. (Sorry about that, but it is life!) The insurance industry profiles. As I said above, your age and sex influence your premium cost, and if you have a public record as a risk-taker, you can bet the price goes up. However, there are some things you can do to get and keep a low rate. If you’ve already “blown it”, but make some permanent changes, then over time, you can improve your rate and save money on your insurance premiums too.
It all starts with you
What does your driving record look like? Do you have a DUI, speeding tickets, moving violations, or an at-fault accident? If you do, you are a greater risk to insure than someone who has no history of speeding tickets or moving violations or at fault accidents. Face it: You’re dealing with an insurance company—a business. Their major interest is to turn a profit for their investors. For the same service, high risk drivers will pay more than a low risk drivers do. A lifestyle that will make you a lower risk driver lets you save money on car insurance.
DUI
Getting a DUI probably tops the list of things to not do. Driving while under the influence or while impaired is just wrong. There is never a good reason to drink and drive, or to drive while using drugs. Please—just don’t do it.
Speeding tickets and other moving violations
Because you have a driver’s license, its only fair to assume you know the law. It’s also fair to assume you wish to save money on your car insurance. So obey the speed limit, slowdown in school zones and construction sites, no more California stops (come to a completed stop at stop signs and traffic lights).
Credit Score
An insurance company’s take on your credit score is important. The lower your credit score, the higher your insurance rates can be. The logic—good, bad, or otherwise—is that a poor credit rating makes you more of an “at risk person” than someone with a good credit rating.
What year and type of car do you drive?
Do you have a new car or an older model? A new car will cost more to insure than an older car.
Are you a motor head? Do you need to feel that power? If your answer is “yes,” your insurance premium will probably be higher than if you drive something more conservative.
Is your car paid for?
The company that financed your car expects to be repaid even if the vehicle is destroyed. And why, if your car is totaled, would you want to continue to pay for it? You can’t use it anymore! That why there is collision insurance. (Collision insurance provides coverage for repairing your car after and accident.) After your car is paid off you may elect to drop the collision part of your insurance. This will reduce your car insurance premium, BUT … before you drop collision insurance, you need to accept that if the accident is your fault there will be no insurance money to repair or replace your car.
Deductible
That is how much out of (your) pocket do you feel you can pay per repair. If you raise your deductible, insurance premiums will (probably) decrease because the insurance company will be obligated to pay less per at-fault incident. Do yourself a favor, set aside funds to meet your deductible. You might never need to use them, but there is no point in not being able to afford the deductible if you should be involved in an at-fault accident. Being prepared is a principal of frugal living.
Combine policies
Look into getting all your insurance coverage from one company. Do you have homeowners insurance? Mortgage protection insurance? Renters insurance? If you purchase more than one policy from them, an insurance company will often offer a discount. It’s always worth asking about.
Big Brother
Some insurance companies offer to give or rent to you a device that records your driving habits—jack rabbit starts, using too much break, hard turns, etc. After they assess the results, if there are few undesirable incidents, they may offer a discount. On the other hand, if they don’t like what they see, you charge you more if they don’t like what they see. Try at your own peril.
Pay every 6 months
Most auto insurance companies will give you a healthy discount if you pay your insurance 6 months at a time. (This cut my insurance premiums in half). Never be afraid to ask about a discount. What’s the worst they can say?


Conclusion
Saving money on car insurance requires a lifestyle conducive to inspiring the confidence of your insurance company. It’s necessary for your driving practices to be inline with their values: drive the speed limit, keep your credit score as high as possible, be a responsible adult. There are many factors, some not included in this article, that determine what your premiums will be. Learn what these factors are and comply. You will enhance the probability to save money on car insurance. Yes you can save money on car insurance.

Never miss another post follow me on Facebook



Facebooktwittergoogle_pluspinteresttumblrFacebooktwittergoogle_pluspinteresttumblr

Douglas Antrim

5 Comments

  1. DOUGLAS ANTRIM, your suggestions on saving money on car insurance are really helpful and interesting.

    One more thing everyone can save there money via comparing there insurance policy company by company and they can do this with help of some website which provide free insurance quote.

    Its really nice to ready your post.

    Thank you.

    • Thank you for taking the time to read my article.
      I took a look at your site and I can see where it could be helpful to someone.
      Thank you for your kind words.
      Douglas

  2. No doubt, owning a car is expensive. But I think servicing and maintenance costs, insurance costs make it even more costly. We can not control servicing and maintenance costs and also fuel costs, we can only reduce the efficiency by following a proper maintenance procedure, which will also make the car more fuel efficient. But what about insurance cost? Can we control it? Yes, we can. Depending on different variables, the cost of insurance varies by hundreds of dollars. The only point is we need to choose the right policy for our vehicle in order remain beneficial. To my outlook, it is better to follow the above steps, by which we can save some money on our car insurance.

    • You are correct in every thing you have said. Cars can be expensive but there are things we can do to bring the cost of operating a car down. Thank you for your comments

Leave a Reply

Your email address will not be published.