How to Get the Most for Your Money: 11 Ways to Save Money on Your Car Insurance...
There are thousands of factors that go into the price you pay for car insurance. Some of those are where you live, your credit, but surprisingly you can control some of them. Here are 11 ways to save money on your car insurance.
- One Insurer, Multiple Policies - Does your car insurance company also write renters or homeowners insurance. If the answer is yes then you could get a quote for one of those types of policies. Many companies will offer a discount on both policies. If your car insurer only writes auto insurance perhaps you should switch to a carrier that does. Often times the savings is so great it is like getting a policy for free!
These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.
* Tip. Talk to your agent about multi-policy discounts.
- Good Driver, Good Price - It shouldn't be a surprise that your driving record plays a role in the price you pay for insurance. Certain insurance companies and programs they have caterer to certain types of drivers. For example, Some companies offer the best rates for people that have had several tickets or no prior insurance. If you have a good driving record you should be with a carrier that has programs for safe drivers.
* Tip. Make sure you're getting the best discount for your driving record. Talk to your agent. And remember, be a safe driver. It will save you money.
- The Beauty of the Bus (or Other Mass Transit) - The usage of your vehicle does play a role in the price you pay for insurance. If you drive your car to and from work and it is 10 miles one way it will be more expensive if someone is working part time and only 3 miles from home.
* Tip. Some drivers should consider mass transit if available in your area or car pool. Yes, there's a price there, too. But you will reap the savings of gas and lower insurance costs.
- Low Mileage, Low Price - Similar to the above the number of miles you drive to work - if you are just using your vehicle for pleasure use, less miles less money. On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.
* Tip. If you drive less than the average, you could be eligible for low-mileage discounts, which some insurers offer.
- High-Profile, High-Cost - The cost new of a vehicle plays an important role in the price you pay for insurance. The cost for a foreign manufactured vehicle is going to be more expensive than an american made vehicle because parts have to be shipped from overseas and are sometimes difficult to obtain.
* Note. To get detailed information on your vehicle(s) - or a vehicle you're thinking of buying - write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the "Highway Loss Data Chart."
- Raise Your Deductible - You can definitely save money on your car insurance by raising your deductible for physical damage. If you have comprehensive or collision coverage on your car, by increasing the deductible for these coverage you can lower your premium.
* Tip. If it's been years since you've had an accident, you may be better off raising your deductible and paying less each year for insurance.
- Drop Unnecessary Coverages - If you have an older vehicle that isn't worth as much if it were damaged. The money you are spending in collision coverage might be better off in a savings account instead of paying the insurance company for coverage you wouldn't really need. * Tip. As a general rule, any car worth less than $1,000 shouldn't have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.
- Discounts, Discounts, Discounts - There are many discounts available on auto policies. Many are determined by the vehicle identification number like anti-lock breaks, seat belts and alarm systems.
* Tip. Make sure you are taking advantage of all the discounts available to you!
- Taking the Defensive - Defensive driving class saves you 10 % on the liability & collision portion of your insurance premium for up to 3 years. Multiple vehicles & drivers you can all take it and save! You don't have to go sit in a class room anymore unless you prefer learning in that environment. You can take it online! *Tip. We offer the course on the home page of our website www.tiains.com it is less than $30 to take, you can start and stop it at anytime and have up to 30 days to complete it.
- Low-Cost and High-Cost Areas - Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.
* Fact. Rates can vary greatly from state to state. For example, someone living in New Jersey, Massachusetts or Hawaii pays several times more, on average, than someone in North Dakota, South Dakota or Idaho.
- Credit Where Credit Is (Or Is Not) Due - Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies.
* Fact. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor - even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor. Many insurers do not use credit as a factor.
* Tip. Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.