Nine Ways to Save on Car Insurance

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August 28th, 2009 | cashrunner | Posted in Finance, Frugality

1. Shop around. Get quotes from at least three different insurance providers. Be sure to request the same coverage each time so that you can compare quotes.

2. Get all the discounts.

Multi-policy discount. If you get your home insurance and your car insurance from the same company, you can usually get a discount.

Multi-car discount. If you are married, be sure that you and your spouse carry a combined policy.

Group discounts. You can often get discounts just for being affiliated with certain groups such as large corporations, the military or professional associations.

Vehicle equipment discounts. You can get an additional discount if you have safety equipment installed, such as anti-lock brakes, an anti-theft system, or daytime running lights.

Good driver discount. A clean driving record pays. If you haven’t had an accident in several years, check if you qualify for a good driver discount. The definition of who qualifies as a good driver varies from state to state.

Defensive driving discount. Complete a defensive driving course. Most insurers will offer to lower your premium.

Good student discount. Students can get a discount just for being good students. The definition of a good student isn’t strict at all. It’s usually any full-time student between 16 and 25 years of age with a GPA of B or better.

Loyalty discount. Some insurance companies reward you for renewing your car insurance with them.

3. Raise your deductible. If you increase your deductible, your premium will be less. If you’re a cautious driver who never gets into accidents, increasing your deductible may be a prudent decision.

4. Lower your coverage. The less coverage you have, the less you pay. If you have an older car, you’re probably better off dropping comprehensive coverage and sticking with liability coverage only. As far as the amount of coverage is concerned, you’ll have to make a judgment as to how much you really need and can live with.

5. Fix your credit. Most insurance companies check your credit history. If your credit is not in order, you’ll likely be asked to pay more.

6. Don’t get into accidents. Even minor accidents are taken seriously. Many insurance companies will raise your premium by 40% after an accident. If your personal safety is not already good enough of a reason for you to slow down, then this should be.

7. Pay your premiums in full. Paying on a monthly installment plan is almost always a bad idea. The monthly surcharges add up quickly. Plus, if you ever miss a statement, you might have to pay a hefty late fee. In some cases, your insurance might even cancel your insurance. Save yourself the headache and pay your premiums in full.

8. Buy a car that costs less to insurance. Next time you go out to buy a car, you should consider how much it will cost to insure it. Cars with higher theft rates and repair costs are more expensive to insure.

9. Check your mileage. Many people just accept the default annual mileage. If you don’t put many miles on your car, perhaps because your work or school is close to your home, make sure this is reflected in your policy. The less you drive, the less you have to pay.

Photo Credit: Caitlinator

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