How to Reduce Your Car Insurance

How to Reduce Your Car Insurance

Most car owners just pay their automobile insurance premiums year after year because its, frankly, easier that way.  Unfortunately, they don’t look into some of the ways that one can save money.  Funny thing is, there many ways that drivers can save on their automobile insurance.  In this article, we give you seven ways that you can quickly use to lower your insurance premiums.

Shop around

Few Americans shop around to see what the best prices are on car insurance policies. This one is easy; go on-line and get some quotes from other insurance companies.  Be sure you look at local companies, too, not just the ones on the internet advertising “Best Rates.”

Bundle policies

Do you own a house? If you insure your home and your car with the  same insurance company, you can usually get a bundled rate.  In many cases, this could save you more than 10% a year. It’s simple, just give your local insurance agent a call and they will be glad to talk to you about this option.

Eliminate coverage on old cars

Once your car is 10 years old or so, consider scaling your insurance coverage to just “injury and property damage.”  A car that old doesn’t have a great deal of value so why pay for collision coverage. If you have an accident, the insurance company won’t pay any more than the car is worth so if that’s a few hundred dollars, don’t pay for the collision coverage. This can save you some good money and it’s just a phone call away.

Don’t file

You don’t always have to file a claim after an accident. If you are at fault, filing a claim can raise your premium. So if you’re involved in a minor accident involving another vehicle, consider paying the other person cash to get their car repaired and don’t file a claim.

Get Monitored

Many insurance companies now offer a discount on their insurance if you agree to be “monitored.” The service manager at Sheridan Ford in Wilmington, DE, a full-service Ford dealer, explains that this is a small device that plugs into your OBDII port in your car.  It records your driving habits so the insurance company can see how safely you drive. Progressive, for example, gives discounts of up to 30% for drivers with good driving profiles.  If you are a good driver, ask your insurance company if they offer monitoring discounts.

Mileage Discounts

Some companies will offer you a discount if you drive less than a certain number of miles.  They consider such drivers to be less risky than high mileage drivers. If you put relatively few miles on your car per year, you should consider this.

Got a good credit score?

Your credit score could be affecting your insurance rate.  A recent study found that there is a 30-40% difference in the cost of auto insurance between someone with great credit and someone with poor credit.

Does your teen get good grades?

If you have a teenager, make sure your insurance agent knows if your child gets good grades.  Students with good grades generally pay an average of 5%-15% less than their fellow teens. All you need is a progress report from the school or institution that they attend or did attend.