Easy Ways To Reduce The Amount Of Money You Have To Pay For Car Insurance

You don’t wish to pay over the odds for insurance, but also want a good provider – here are some good tips to achieve this.

1. Get A New Rate Quote Once A Year

Each year, you should get quotes from other companies to find out how much they would charge you for the same level of coverage that you have with your current provider. Although there is no guarantee that you will get a quote that is lower than what you are currently paying, it never hurts to check and so you should try an insurance comparison service.

Chances are, you already are paying the lowest rate – especially if you have been with your provider for a relatively long period of time. Most companies offer discounts to long-term customers. In 2014, Consumer Reports surveyed nearly 20,000 CR.org subscribers. Interestingly, they found that a mere 10% of the people surveyed found that they could reduce their insurance costs by switching to another company.

Again, however, it is so easy to get quotes from multiple companies thanks to sites like NetQuote, Answer Financial, and Insure.com that it is worth doing once a year.

2. Choose An Insurance Company That Has An Excellent Reputation

When it comes to insurance, the amount of your premium is only one factor that weighs into the total cost of your policy. You also have to think about the costs that you may incur if you ever have to file a claim. For instance, you may wind up losing money if the insurance company tries to give you the lowest possible estimate for your loss or if they try to get the repair shop to use the cheapest parts available. Some low-cost insurers will also raise your premium significantly after you file a claim.

A high-quality insurance company, on the other hand, may charge higher premiums. However, if you ever need to use their services, you most likely won’t have to deal with all of those other hassles and costs. Based on a survey of nearly 65,000 CR.org subscribers, the highest-rated insurers were Amica, USAA, and NJM. These three companies scored higher than 90.

3. Understand How Your Deductible Affects Your Premium

Choosing a higher deductible may help you save a significant amount of money. For instance, if your current deductible is $200 and you raise it to $500, you can save as much as 30% on your insurance. If you increase the amount of the deductible even further, raising it up to $1,000, that savings could increase to 40%.

As long as you are a safe driver, increasing your deductible might be a good option. The only thing to remember, however, is that you should have more than enough money in savings to pay your deductible in case you ever need to file a claim.

4. Make Sure You Have The Right Level of Coverage

At first glance, it may seem like the best way to save is by reducing your coverage to the bare minimum required by your state. In the case of liability insurance, however, that isn’t always a good idea. If you cause an accident that results in a serious injury or significant property damage, you may wind up facing a tremendous financial burden if you don’t have adequate insurance in place to cover the cost of the damages.

On the other hand, you may not need extra coverage such as roadside assistance or rental reimbursement coverage – especially if you are already a member of an auto club or if you have a second vehicle that you can drive if your other vehicle has to go into the shop.

As long as you have good health insurance, you may not need to pay extra for personal injury coverage or for medical payments coverage. If your insurance is lacking, however, or if you often have passengers in your vehicle who don’t have good health insurance, these extra types of coverage may be beneficial.

5. Use Discounts To Your Advantage

There are countless types of discounts available that you may qualify for. Talk to your insurance company today to see if any of the following discounts apply to your situation:

* Vehicles that have devices installed to prevent theft or to improve safety.

* Drivers who take a refresher course even if they have had their license for a long time.

* Student drivers who maintain a high GPA.

* Drivers who participate in a defensive-driving course.

* Drivers who don’t have a lot of experience behind the wheel but who have taken a driver training course.

* People who belong to professional groups or certain alumni groups.

Avery Parker