Ways to Cut Car Insurance Costs

February 7, 2013      

No one likes to pay car insurance, but everyone has to have it. Is there any way to reduce your yearly payments?

The most important thing to remember is that regardless of where you live you can get a better deal on car insurance by shopping around. Don’t have time to shop around, that is what insurance brokers do for you!

Here are some more tips.

1. Don’t pay for more coverage than you need.
If your car is over 10 years old and you’re carrying collision and comprehensive coverage, you may want to look at dropping that coverage. State laws don’t require that type of coverage, but most states do require basic liability coverage.  You may cut your premium by 20% or more by doing this.

2. Bundle your policies.
Many insurers offer discounts if you buy at least two personal insurance policies from them. A typical combination is car and home insurance policies. Discounts can be substantial.

3. Ask for discounts.
You may be eligible for discounts based on age, driving record, memberships or other considerations. For example, drivers who are 55 and older typically qualify for a senior discount. If your household includes teen drivers, they may qualify for “good student” discounts. Online defensive driver courses may reduce your premium too.

4. Ensure your rates are based on accurate information.
Auto insurance rates are determined based on factors such as your age, driving record, geographic location and driving habits. But if something has changed that could reduce your rates, you’ll want to make sure your car insurance company knows about it.

You may be eligible for a lower rate if you’ve recently modified your driving habits. Example: You now work from home rather than at an office and are driving far fewer miles each week.

5. Shop around for a better deal.
If you think you can get better coverage for the same amount or less with another insurance company, obtain quotes and talk with an insurance broker who can compare several insurance companies at once. Many consumers fail to look around for lower car insurance rates — and could be paying higher premiums as a result.

6. Guard Your Driving Record.
Points on your license mean higher insurance rates. It’s worth your while to go to court to get points reduced on infractions. In addition, many states allow you and drivers in your family to complete courses to reduce those points.

7. Raise Your Deductibles.
Deductibles as low $100 on your collision or comprehensive insurance raise your premium. Consider a $500 or $1,000 deductible–that’s the amount you must pay when there’s claim–and you may save hundreds.

For more information on car insurance, or for car insurance quotes, contact TriState Business Insurance.

ABC News

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