The Best Tips for Saving on Car Insurance

Car insurance is a necessity that people certainly love to hate. It definitely eats up a good chunk of everyone’s pocket change and the premiums, depending on which state you live in, can be quite high. With that in mind we went looking for tips on how to save money on car insurance for you, our dear readers.  What we found were quite a few that will give you the opportunity to save in various ways. Keep in mind that car insurance laws, rates and rules vary from state to state and make sure that you check with your state on anything that you plan to do. Aside from that, sit back and take a look as we present  the best tips for saving on car insurance. Enjoy.

  1. One of the quickest and easiest ways to save on car insurance is to get a higher deductible. This is especially true if your car is less than 10 years old.
  2. If your car is newer, well-maintained and a brand that isn’t prone to breaking down you can usually drop towing from your insurance policy without too much risk. Of course maintaining your car is vital  for this to work so make sure that you do that. Also do your best to make sure that you never lock your keys in your car or run out of gas.
  3. Many automobile insurance policies have a  car-rental rider that will pay if you need to rent a car. Unless you’re a frequent traveler or you spend hours on the road every day you can probably drop this also.
  4. If you’re in the market to purchase a new car make sure that you do the research to find out if insurance rates for your particular model are within reason. There is no real formula for determining what it will cost to insure a particular car so, before you make a final purchase, inquire with your insurance company what the costs will be. Many times the automobile that you thought would cost less will cost more and vice versa.
  5. Unless you have money to burn don’t waste any of it on aftermarket extras for your vehicle. While wheels, spoilers, an awesome stereo or a new exhaust may give you a small amount of pleasure, the fact is that if your automobile is totaled or stolen you’ll get back much less from your insurance company than you actually paid for the extras. In our opinion it’s just not worth it.
  6. If you are insuring more than one vehicle or a combination of different types of vehicles such as cars, boats and motorcycles, it would be best for you to ensure them all at the same place.  In most cases doing this will allow you to take advantage of volume discounting.
  7. If possible don’t pay your insurance premiums on a monthly basis. The average insurance company will charge anywhere from 2 to 4% extra when you pay monthly rather than paying every six months. If you have no choice but to pay monthly you should set up an auto-pay service with your insurance company as they will usually charge less when you do this.
  8.  A factor that is becoming more important in the decisions that you will make determining your automobile insurance is your credit rating. As such, it would behoove you to keep your credit rating high. (Duh.) That being said, it is illegal for an automobile insurance company to change the rates on you mid-policy so don’t worry if you have a sudden drop in credit for some reason. Also keep in mind that you are allowed to request that your insurance company check your score once a year. If your policy was written when your credit wasn’t so wonderful  and it has improved since then this would be a great idea. (Just remember that it works the other way too.)

While we realize that paying for automobile insurance is a fact of life that doesn’t mean that we have to overpay for it. Automobile insurance companies, like any business, cater to the needs of their customers. If you have proven yourself to be a good customer, have good credit and have few or no accidents you should be able to negotiate automobile insurance terms that are more to your benefit.

We hope you enjoyed this blog and that the advice and tips that we gave were helpful. Make sure to come back and join us soon for more excellent money-saving information and tips that you can use in your daily financial life.

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