If you were quite disturbed when your auto insurance policy renewed this year and you found that your rates increased, don't despair your not alone. You can still save money on your premium by following a few simple steps.
We all know that it's not exactly cheap to drive a car these days. As gas prices fluctuate up and down and incomes fail to keep pace with inflation, it seems most of us are looking for ways to cut costs.
All you have to do is just ask anyone who's been involved in an accident lately. The costs can mount quickly. The financial liability for yourself and the persons involved also mount quickly.
Here are some tips to help you cut some corners. You still get protection from your auto insurance carrier but take on more financial liability. This can work in your favor because if you are a safe driver then your liability will be minimal.
1. Comparison Shop. If you have a good driving record and buy a safer car, your premium rate should go down.
2. Find out what your insurance will cost before you buy that new car. Auto insurance companies typically charge more for cars that are expensive to repair or don't fare well in accidents.
3. Ask your insurer for discounts. These cost-savers can lower your insurance premiums more than you might think. Combining two or more cars on one auto insurance policy.
Buying a car with airbags or other safety equipment and take the highest deductible you can afford. Your deductible is the amount you pay out-of-pocket, in case of a claim, before your insurance company starts paying its share.
The higher you're deductible, the lower your premium, it's as simple as that. Just be sure you're able to absorb a larger portion of your loss in case of an accident.
4. Make serious attempts to improve your driving record. The more tickets and accidents you have, the more your auto insurance costs will rise.
So take some advice and start to drive cautiously. This will help you improve your motor vehicle record, and when you do inform your auto insurance company of the change. They'll reclassify you as a safer driver, and hopefully lower your auto insurance rates in the process!
5. Consider dropping comprehensive and/or collision coverage if you drive an older car. Physical damage coverage's like these reimburse you for damages to your own car. All this depends on the state in which you live in.
Obviously rates are different if you live and drive in NYC compared to Philadelphia. Your best bet like always is to shop around and compare rates and services from many carriers.
6. Review your policy regularly, and keep your coverage updated. Your auto insurance rates may fluctuate due to adding or removing a driver from your auto insurance policy and replacing an older vehicle with a newer one.
For those of us who drive, auto insurance is a necessary requirement enforced by law. Though we hate paying what we feel are high and ridiculous premiums, the financial protection we gain from those policies is a trade-off we just can't afford to live without. |
