Car insurance: the mere words strike fear into many vehicle owner’s hearts. Many people can see the dollar bills flying out of their wallets when they think of car insurance. Although car insurance is a necessary evil, there are ways to save big on car insurance premiums.
Know Your Policy
Everyone should pay attention to their car insurance policy. When renewal packages come in the mail, read them thoroughly and compare them to the previous year’s paperwork. By doing this I found that the year over year change in my policy for my two cars and home was increasing by over $300 annually.
Bundle and Save
Although this might seem obvious, insurers often give a bundle discount to customers who insure both their vehicles and home with them. If you are dealing with multiple insurance companies, it is worth making a few quick calls to see if using only one might save you some money.
Make a Few Calls
When renewal time rolls around, it never hurts to make a few phone calls to other insurance companies and brokers. I had been with the same insurer for both my home and vehicles for ten years and felt I was getting a reasonable rate. I made one phone call and was given a quote of over $1000 less for the same coverage. I was shocked and pleased but I did not end up going with that company. I made a few more calls and found an insurance company that is affiliated with my college that gave me an even bigger discount, effectively cutting my premiums in half for even better coverage than I had had.
Ask for a Discount
It may seem obvious but asking for a discount is often a great way to get one. Many insurers give discounts to good drivers. They will often lower premiums for young drivers than have taken drivers education. Many alumni associations and professional organizations also have partner deals with insurers where consumers can get a substantial discount on rates.
Don’t Over Insure
When considering insurance for your vehicle, make sure you don’t over insure. Examine deductible levels and decide what you can afford to pay out of pocket. A $200 deductible might seem very attractive but the lower the deductible the higher the premiums. Raising your deductible to $500 or $1000 can save you big bucks on your premiums.
Car insurance is expensive yet anyone who drives knows this is a necessary evil. By carefully looking at your policy and making a few small changes, there is potential for big savings. And don’t forget that being safe driver with a clean record will keep you in your insurance company’s good books.