Three Simple Tips for Saving on Car Insurance?

Answer 1

Automobile insurance is one of those topics that is right alongside a trip to the dentist or filling out your tax returns: It has to be done, it's no fun and it costs money. It is possible to save money on car insurance premiums if you examine closely how much you drive, how your drive, what you drive and what level of coverage you carry.

First things first: car insurance is mandatory. You must have it in order to register your vehicle and get license plates. What stings a little about this is that some part of the premium you pay is due to the need for auto insurance companies to protect their customers from uninsured drivers. That is to say, if everyone took the law seriously and purchased mandatory car insurance, premiums would be lower.

Here are a few tips to reduce your premiums yet still comply with the law and provide the level of coverage you need in order to feel comfortable.

Consider raising the deductible on your collision coverage.

If your car is older than five years, you're driving is limited and your experience is that you have never or only infrequently been involved in an accident, the money spent on collision damage insurance could be reduced considerably by raising a deductible from $250 to $1000. If your car is older, chances are that even a minor collision could cause more damage than the vehicle is worth. If this is the case, consider dropping collision coverage altogether.

Consider raising the deductible or eliminating coverage completely for the comprehensive portion of your policy.

There is some element or risk involved, but if you were to take the money you saved by raising you deductibles on collision and comprehensive coverage, you could amass a nice savings account that would also be available in the event of some non-car related event.

If you have health insurance, drop any medical coverage in your auto policy.

This is duplicate coverage and is completely unnecessary.

Other things you can do are to combine coverage for home with auto coverage to get a multi policy discount, look for auto insurance that gives discounts for good driving records, low amount of miles driven and safety equipment like air bags and anti-lock brakes.