How to Save Money on Your Car Insurance 

 Originally Written: July 29, 2010

By  Hanna Trafford

It might pay off for you to review all your insurance rates and do some comparisons and research your options. If you don’t see any better rates, check with your provider to see if you are not missing some discounts. Most companies offer discounts for multi-line discounts so if you have your car insurance with one provider and your property insurance with another, changes are that you are missing on saving some money. Ask them if it would be an advantage for you to do things like increasing your deductible or removing collision coverage on older vehicles.

  • Reduce Coverage on Older Vehicles

If your car is old and paid for, consider eliminating your collision coverage. This is the coverage that pays for any damage that you cause to your own vehicle, and it makes up a big portion of your insurance cost.

  • Use One Insurance Company

Speak to you agent about grouping  all of your insurance policies – auto, home/renters, etc. –to his insurance company, and you are likely to receive at least a 10% discount

  • Raise Your Policy Deductible

This move would reduce your premium drastically– deductible is the amount you pay out of your pocket if you need to make a claim. The premium difference between a $250 deductible and a $500 deductible is usually quite substantial, and the difference between a $250 deductible and a $1,000 deductible, even more so. Decide how much you can afford to spend out of pocket, and then adjust your deductible accordingly.

  • Get a Quote Before You Buy

Before buying a new vehicle, call your insurance agent to find out how much it’s going to cost to insure the vehicle. Premiums can vary widely based on the make, model and year of a vehicle. This is one instance where smart shopping really pays.

  • Drive Carefully

If you are considered a save driver by your insurance company, you will be rewarded with better insurance premiums. That means avoiding  speeding and staying out of potential problem like not wearing your seat belts. Most companies will further reduce your rate every time you go three years without a traffic violation.

  • Drive Less

Are you an infrequent driver? Then, tell your insurance agent about it. Less time on the road means less opportunity to get into an accident, and this often translates into a lower premium for you. Are you a carpooler? Then, be sure to mention this as well. There’s more than one way to earn the low-mileage discount.

  • Look For Teen Driver Discounts

Insuring a teen driver can be expensive, but there are things that you can do to minimize the expense. Ask about a good-student discount if your teen carries a B-average; then check to see if taking a safe driving course could result in an additional discount.

  • Skip Monthly Bill Payments

Remember that you pay for convenience of monthly payments. Check with your agent about paying quarterly, bi-annually and annually. Review the rate difference and see what you can handle.

  • Protect Your Car from Theft

Ask you agent or your insurance company if your car qualifies for a theft discount and what you could do to get it.

  • Understand Your Policy

Your policy probably comes pre-packaged with a few extras you may not need. They may include things like road assistance and if you are insuring new vehicle, you most likely have that coverage from the manufacturer. Go over your policy line by line and ask questions.

Hope you found this information helpful, please send in your comments, suggestions and experiences – your input is always welcomed and very much appreciated

Hanna Trafford

Hanna is the mother of two grown sons Dan and Dusan Nedelko, and is also the Grandmother to Jax, Cohen and Mila. She is the lead editor of Mama Knows and is hoping to create an exchange of communications with other grandmothers, mothers and daughters - giving everyone the opportunity to learn and share about everything that is "Mama"

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