It seems that no matter what you shop for now a days the price is only doing one thing, going up. Not to fear this article will depict some helpful tips that can help you save some of that hard earned green and put it back in your pocket.
1. Shop Around – This tip is at the top of any bargain hunters list, and insurance is no different. We suggest to always get at least three insurance quotes prior to committing with any policy provider. Some insurance rates can differ as much as $500 dollars per policy. Some insurance providers use in-house employees to sell their insurance directly to consumers through telephone or internet. Others use “exclusive” agents to sell their products, independent contractors who mostly work on commission to sell the products of only one company. Assuming that you have a good driving history with minimal tickets you are more likely to get better deals from direct agents, since they exclude the middleman receiving commission. The down side is that these agents can be very selective on what type of driver they agree to insure, so if you have had recent encounters with law enforcement or someone else’s rear fender your best bet would probably be to check with a major provider first.
2. Know which Discounts are Available – Discounts can vary from state to state and it is always good to know what type of discounts are available in your area, some to be aware of are:
• Combination Discounts
• Defensive-Driving Classes
• Good-Student Discounts
• Retirement Discounts
• Association & Group Discounts
• Safety Discounts
• Loyalty Discounts
Also if you have other types of insurance such as homeowners insurance ask about bundled rates.
3. Increase your Deductible –Your deductible is the amount of money owed in order to receive repairs when an accident does occur. This does not include liability which only covers the other driver in case of an accident.
Like with many other types of insurance increasing your deductible is another sure way to bring down that monthly payment. We all know that insurance is a “what if” gamble but we have all heard the saying “when it rains it pours” so make sure that you have enough coverage that keeps your finances above water in case of an accident.
Increasing your deductible can cut your premium substantially, and since insurance is meant to cover the big ticket items that you could not handle comfortable on your own, a higher deductible might fit your bill. For the most part, increasing your deductible from $300 to $600 could reduce your premium anywhere from 15% to 30%. Raising your deductible to $1000 could save you as much as 40% or more in some cases.
4. Cancel Coverage-If you drive a late model car that’s value is less than 10 times the amount you’d pay for coverage you may want to consider canceling collision and comprehensive coverage altogether. Collision and comprehensive coverage can amount up to 40% or more of the total cost of your premium, and only covers the replacement value.
5. Credit Report Detail-Believe it or not your credit report can affect your auto insurance rates. An individual with extremely poor payment habits could pay as much as 30% to 40% more than their opposite counterpart. Although the use of credit-data varies from state to state, a variety of insurers use a ranking system called “insurance score” to assess the risk of a driver. The score can be compared to a credit score with the insurance score relying heavily on bill-paying habits rather than the overall debt of a driver.
6. Right Wheels can get You Better Deals-If you are in the market for a new car, keep in mind that the higher theft rates as well as repair costs will end up costing you more to insure. So if you are debating between which two car models to choose from rather than flip a coin, contact your local insurance agent for any noticeable monthly premium difference.