10 Secrets to Decreasing Your Auto Insurance Expenses

With gas prices on the rise, credit card bills coming in, college debt, mortgages, and the recession in full power you may find yourself struggling financially and wondering why you pay so much for car insurance. Don’t fret; we do have solutions for you. Today we’ll reveal some of the secrets that will decrease your insurance expenses considerable.

1. Shop, shop, shop

One of the reasons people end up paying high insurance premiums is that they don’t check out their provider’s competition. At least every couple of years, you should look at as the free auto insurance quotes offered by as many reputable companies as you possibly can. While this may be tedious and time consuming, your efforts will pay off. One of two things will happen. 1st case scenario: You’ll find out that your provider is giving you the best car insurance rates out there, in which case you can rest easy with the knowledge that you are not being cheated out of your hard earned (or easily inherited) cash. 2nd Case Scenario: You will find a reputable company that offers you significantly lower auto insurance quotes and you will start saving big bucks thanks to your effort. Either way you have nothing to lose.

2. Adequate coverage for your needs:

One of the easiest ways to reduce your insurance costs is to decrease your coverage to the state mandated minimum. But in many cases, this may not be a good solution in the long run. For example, if you only have minimum liability and have an accident where the other party is not found at fault then you’ll be responsible for the damages to your car, medical bills, and any other expenses incurred. So in the long run you aren’t really cutting down on expenses, you are just increasing your chances of going into debt or deeper into debt as the case may be. Unless your car is pretty old and you can afford to replace it on your own, we suggest you get Collision, Personal Injury Protection and Comprehensive alongside Liability.

3. Higher deductible

The higher your deductible, the lower your premiums will be-the lower your deductible, the higher your premiums will be. So by raising your deductible, you are effectively decreasing your premiums. However, it’s important to note that you should only sign up for a deductible that you can actually afford because in the event of a claim, you will have to actually have to fork out this amount. It’s advisable to keep the deductible amount aside and not touch it unless you make a claim.

4. Good driving record

A clean driving record will earn you dirt cheap quotes for car insurance. A rash driver is more likely to have accidents, hence more likely to make claims and hence more likely to cost the insurance company big bucks. One way to cut back on expenses is to take a defensive driver’s course; it will make you a better driver, which leads to a better driving record, which leads to better lower insurance premiums. Also, many insurance providers will offer you a free auto insurance quotes for completing a defensive driver’s credit.

5. Good credit history

Your credit history is a reflection of your financial reliability and the likelihood of you paying your insurance premiums. So many car insurance companies use this as a criterion for calculating your insurance premiums. So pay your bills and live within your means.

6. Multiple policy

Many companies will give you a rebate for insuring multiple cars on the same policy. Others will also give you discounts for combining your other insurance- homeowner, life, etc- with theirs. So talk to your insurance provider about bringing it all together.

7. Discounts

Many providers offer a variety of discounts such as a good student discount, air bag and safety device installation discount, good driver discount, loyalty discount, etc. Your agent may not volunteer this information on his own so ask him if you are eligible for any discounts.

8. Drive a used car

Used cars are not only cheaper to buy, but they are also generally cheaper to insure. When we say this we don’t mean a broken down, ancient buggy pretending to be a car. Those are easy to break into and cost a bomb in maintenance so your rates will most likely rise if you buy one of those. We’re talking about all those beautiful cars on the market that are in mint condition, have only been driven for a few years and still have warranties.

9. Longer Terms

Purchase a 1 year policy instead of a 3 month or 6 month policy. Not only will it save you the stress of whether your company will keep you on or not, but you’ll also save money. Many insurance companies will give you a discount for signing with them for longer terms.

10. Automatic Payments

Allowing your company to automatically credit your account for payments will also save you money. Yes, many insurance companies will give you a discount for that too. Just keep a check on how much they’re taking; you don’t want to get cheated in the bargain.

It may be extremely tempting to drop insurance altogether. After all, you reason with yourself, you may never even need to make a claim and then the money you’ve consistently been spending on your premiums would go to waste. Don’t let that voice in your head convince you to drop insurance. Why? Well firstly, driving uninsured would be against the law. You could get fined, have your car impounded and have your license taken away. Even worse, imagine if you get into an accident the day you drop your coverage, are found at fault and have the financial burden of thousands of dollars in medical bills and property damage? So keep your insurance coverage. Just test the 10 secrets we’ve shared with you today and you might just be very surprised at how much you save!

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