Surefire Ways to Cut Your Automobile Insurance Costs
How to Cut the Price of Your Car Insurance
1. Raise your deductible to cut your auto insurance costs: According to the Cleveland Insurance Agency, "increasing your deductible from $200 to $500 on collision coverage could reduce your cost by as much as 30 percent." While you will have to pay more out of pocket should you have an accident, price reduction in your insurance bill will more than make up for it. Plus, if someone else causes the accident, their insurance company may reimburse you for the deductible.
2. Drive less to cut your auto insurance costs: Onlineautoinsurance .com reports, "the less time that a person spends on the road, the less likely that they will be involved in a traffic accident and cause a loss to their provider." For that reason, your car insurance will be less if you reduce how much you drive, known as a low-mileage discount. Don't forget to report to your insurance company that your mileage has decreased or they won't know to cut your rates.
3. Bundle your policies to cut your auto insurance costs: According to DMV.org, a person can bundle auto, homeowners or renters, health, property, rental, and/or life insurance policies for much lower rates. Don't just give one company all of your business though; do your homework and ask several carriers for quotes, measuring what each will cover versus what they will cost.
4. Pay your bill in full to cut your auto insurance costs: Car insurance companies used to charge a lump sum twice a year to cover your car. Eventually they realized that they could charge extra processing fees each month if they collected monthly payments. Progressive Insurance reports that if you make one payment when you purchase your policy, you'll receive a discount and you won't pay extra fees.
5. Improve and evaluate your credit rating to cut your auto insurance costs: An error on your credit report could mean a lower credit rating and higher insurance premiums in all states except California and Georgia. According to USInsuraneonline .com , "the insurance industry keeps statistics on credit ratings and insurance claims and, based on these statistics, they have found in general that the lower the insurance credit score, the more likely you are to file claims, exaggerate the claims you file, and perhaps even commit insurance fraud." Therefore, insurance companies will charge you higher premiums to compensate.
6. Crack down on your teen to cut your auto insurance costs: Edmunds .com reports that "16-year- olds get into accidents almost six times more often than drivers between the ages of 30 and 59." To get your insurance rates lower, your kids will need to maintain a "B" average in high school or college. Help them earn a young driver discount by taking a safe driver class. They should also leave the car at home when they head off to college. If your teenager feels this is too much to ask, one solution I found worked was asking them to pay for their own auto insurance.
Published by A. Hermitt
Andrea Hermitt is an artist by nature and an educator by necessity. As a homeschooling mom of 10 years, she stays current in all things educational, and cutting edge to help her homeschool her children, and... View profile
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100 Comments
Post a CommentI agree with 5 of the 6 ways to decrease your premium. Reason 1-Raise your deductible. I do not like. When you raise your deductible, you will have to pay more out of pocket expense when you file a comp or collision claim. At the time of the accident, you may not have the $500 or $1000. Not everyone can put their hands on that much money right away. I have an emergency fund but most people don't. That is why you see the newer car with duct tape holding the fender on!! Unless you can afford a high deductible don't use a high deductible! For more information, go to http://www.someoneyoutrust.com/Blog-Details.html?10020.BPID=100017&014.PINSID=2298003
If you choose to exercise the privilege of operating your vehicle on public-owned and maintained roads, then you must also abide by the responsibilities set forth from your government to exercise that privilege.
You are basing your argument that driving, and consequently, the responsiblities associated with driving are mandated wherein I am trying to explain to you that it is a privilege in which you have chosen to participate. Should you not wish to participate, then there is nothing stating that you must, ie. you have a laws to comply with only after you make the decision to exercise your privilege. Nothing about your decision is mandated.
I read the comments of those who complain about "insurance" who are so dam ignorant about
the provisions of a, in this case auto insurance policy. I think of the Auto Contract as being a
magic piece of paper when you need it. Okay, go ahead with your mindless, uninformed comments that make those of you who are critical look very foolish...........just wait until you need it! Someone said "why didn't my carrier pay"..........maybe you should evaluate the real facts and read your police report..........NO IS EVER AT FAULT! How many of you "really" know
the provisions of the/your contact? Then there are those of you who are critical of the corporate structure, mutual vs. stock...........they are all controlled by your states Insurance Bureau and Insurance laws............ "the rich get richer comments"...how about the poorer want to be rich...."mandates make the 1% richer comments".........insurance carriers are usually not at thescene of your accident, or view the basis of your claim..........any of you have "any idea" how many think of the policy as some cash cow and file outlandish, false claims...........it is not the Corporation who is causing some of you a problem........it is usually some mind dead, lazy fool who does not do their job and evaluates the problem, reviews the circumstances and then "blows you off!" Know what you purchase, ask questions and quit "assuming" that a Insurance "Contract" is your claim to riches! How many of you know, really know what a "contract" is...........many of you have very little knowledge of your States Insurance laws, how fault it determined. INSURANCE IS A METHOD OF "SHARING" THE RISK"............do insurance carriers make mistakes? Your dam right they do and some of you have legit complaints...........but in general most of these comments are from the uniformed.
i had State Farm paying $373.00 a month for 2 cars and 1 truck... Switch to Progressive and
now i pay $118.66 a month for better coverage!!!! amazing..
This is stuff I've been doing for the last 10 years because I'm poor. Another thing that should be on there though is to not get tickets. Tickets send those rates even higher.
I live in KY and there have been times I didn't insure my pickup (paid off). It lives at home under the carport unless I need it, then I put insurance on it for what I need. It has a plate, I keep the plates current.
The article that stood out for me what that you save money by driving less. Ok, so if you're not driving your car, why in the heck are you insuring it at all? Aren't you paying for something you are not using then? Free money for the insurance companies...
Amazing that states mandate auto insurance,but are sqealing like stuck pigs about mandatory health insurance!
In my state, if I am stop for any reason, I am ask for proof of insurance. If I do not have insurance, I got to court and pay a fine. However you want to put it, whether through a bond or a policy, it is mandated that one must have some type of car insurance. How is it not mandated? I truly do not understand. Either way, money from the many will be channeled to the rich. Is anyone else following this thread? What am I missing? The state is involved in my personal economics. The state is mandating that I take money from my food bill or other essentials and give it to the rich. I am sure I do not have enough money in the bank to cover you plan to make me legal.
I thought we had just established that buying an insurance policy was not mandated.
And again, how does this in the least make the 1% richer?
I am sorry you felt insulted. All I am trying to say is the rich or getting richer with these types of mandates making the 1% richer.