How to Save Money on Car Insurance

Car insurance is one of those necessary evils that can sometimes have a draining effect on your bank account. If you drive a car that requires frequent visits to the mechanic, that’s even more money out of pocket – and with the price of gas continually rising, your driving related expenses could eventually leave you penniless. But did you know you can actually take steps to lower your car insurance payment without reducing your coverage? Here are the 3 best ways of accomplishing that.
Take a long hard look at your insurance policy. There could be coverages in there you’re paying for that you don’t need. For example, if you drive an older car that’s got low book value, you don’t need comprehensive coverage and you probably could also do away with collision coverage. Comprehensive pays to fix or replace your car if it’s damaged by vandalism, fire, natural disaster – non-accident type things. Collision does the same, only for accidents. But if your car isn’t worth much on the market, paying for coverage might be pouring more money out than you’ll ever get back if your car gets damaged.
Jack up your deductible. If you’ve got a low deductible, that means the amount of money you have to pay out of pocket for any repairs will be relatively affordable. But you’re also charged more for a plan with low deductible. If you opt for a plan with a higher deductible, your premium is cheaper, but you have to fork over more money in the event your car needs repair. As a rule, never set your deductible so high you won’t be able to come up with the money in a pinch.
Talk to your agent frequently and ask about discounts. Did you know you can save money on your car insurance bill if you don’t drive very often? Some people live close enough to work to be able to take advantage of this. Also, the neighborhood you live in can have an impact on how much you pay, which is yet another reason to talk to your insurance agent often – if you move to the country from the inner city, you’re probably going to qualify for a discount. Discounts can also include the presents of safety features such as automatic seat belts. And discounts for anti-theft devices that prevent someone from driving off with your car. But insurance agents aren’t mind readers, so get on the horn with yours every time you have a major life change. It might save you some major bucks you’d otherwise continue to pay.
There are other ways to save money on car insurance, like paying your bills on time or paying attention to the rules of the road (insurers determine how much you pay based on your credit rating and your driving record). Other times, it’s a matter of reaching a certain age – usually when you turn 25, your rates will drop. The biggest trick about saving money on car insurance is to pay attention to what you’re paying and why. Do it, and you’re guaranteed to have more spending cash in your pocket.

Source: Money Talks News