Cut Auto Insurance Costs Without Compromising on Coverage


With the economy in a seemingly endless slump, rising gas prices and the dearth of jobs, paying for full coverage may start to seem like a drag. It is tempting to reduce your coverage and keep only the state mandated limit. However, this is a terrible financial decision, because you could lose a fortune in repairs, medical bills and damages in the event of an accident. Today, we’ll explore some of the ways you can cut back on insurance costs without compromising on your coverage.

Switch providers
While sticking with the same company can get you loyalty discounts, it never hurts to shop around for compare auto insurance rates. Firstly, many companies will give you a new customer discount that could easily rival your loyalty discount. Others might offer you better rates, more thorough coverage, or more discounts than you are currently getting. You could potentially save a fortune by making this switch. But keep in mind that there is no reason to choose a provider just because it gives you the cheapest quote. Make sure that they are reliable and reputed as well; a substandard company will not handle your claims effectively, and that will defeat the purpose of getting insurance in the first place.

Get hitched
Not only do insurance companies consider you more reliable and less likely to engage in reckless behavior that would cause accidents if you are married, but if you and your spouse put your cars on the same policy, your company will give you better rates. This is of course, provided that your spouse isn’t a high risk driver. If s/he is then ignore this tip completely; adding him/her will probably make your rates skyrocket.

Discounts
Ask your insurance provider if you’re eligible for any discounts. While they may not volunteer this information themselves, many companies offer discounts for installing air bags and anti-theft devices, for being a good student, for taking a defensive driver’s credit, etc. Moreover, if you have a clean driving record, your company might lessen your deductible for every year you keep it that way.

Multi-policy
The average American has health insurance and homeowners insurance in addition to car insurance. Throw in RV insurance, pet insurance or other policies specific to their needs. Rather than getting them from different companies, you should purchase them from the same provider, because getting a multi policy gets you cheap auto insurance quotes and rates.

Take a defensive driver’s credit
Many companies will give you a discount for completing a defensive driver’s credit. But even more importantly, the defensive driver’s course will make you a better driver, which will lead to a cleaner driving record, which will lead to the best car insurance rates you can get. In some cases, you can even have a ticket removed from your record by completing this course.

Trade in for a ‘new’ car
Certain cars cost more than other to insure. So if you’re driving a sports car, or any vehicle that is prone to accidents, your insurance provider will charge you high rates. If you’re in a crunch for money, it may be time to switch to a car that makes more sense in terms of insurance and upkeep. The best car in terms of insurance would be a secondhand car that is not too flashy, has good safety features, has only been driven a couple of years and is in mint condition.

Raise your Deductible
Raising your deductible can lower your insurance rates, but keep in mind that in the event of an accident, you will actually have to fork out the deductible. So raise your deductible but don’t stake an amount that you can’t afford.

Evaluate your coverage
The aim of this article is to cut your insurance costs without compromising on your coverage. However, having unnecessary coverage is a waste of your money. In some cases it is okay to have minimum liability. For example, let’s say your car’s value is $2000 and the deductible is $1000. If you file a claim, the insurance company will give you $1000. If you pay $50 in premiums a month, by the end of the year you will have paid $600. So effectively, all you get from the company is $400, which may not be worth it. However, if you don’t have an emergency fund, don’t have health insurance, or would not be able to afford the costs of your car then please keep full coverage.

Having full coverage gives you the peace of mind and the knowledge that an accident will not wipe you clean of your savings or put you into heavy debt. The measures listed above will allow you to keep that peace of mind and simultaneously allow you to cut insurance costs.

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