Car Insurance savings tips

Everyone needs to have car insurance; it’s required by law in just about every state. Fortunately, we can still choose where we buy it. The State hasn’t yet decided to sell insurance, so consumers are pretty free to buy it where they will. But most people are truly horrified to see how much car insurance costs, especially if you have to pay for comprehensive insurance on a new vehicle or if you are a driver under the age of 25. In those cases, the payments are dear.

Here are some suggestions for how to save money on your car insurance:

• Shop around. It’s easier to get prices for insurance than it used to be. Thanks to the Internet, all it takes to get a quote is just a few clicks and a few minutes of your time. You should check around, get a few estimates, and see who can offer you the best price. 
• Get a higher deductible. Should you file a claim, your coverage will not “kick in” until you have met your deductible. The deductible can be as low as $50, but the higher the deductible, the more likely you are to have to pay for minor damage yourself. That reduces the likelihood that your insurer will have to pay. They will reward you for this higher deductible with lower premiums. Remember - insurance is for the stuff you can’t afford to pay. If you need a $250 windshield and you know that you usually have that much in the bank, it’s probably worth your while to have a deductible of $250 or more.

• Drop collision or comprehensive coverage on older cars - Collision coverage pays for damage to your vehicle in accidents that are your fault. But it is expensive; it’s often the single most expensive component of your coverage. If you have an older car that’s paid off, you can save hundreds of dollars per year by dropping the collision and/or comprehensive coverage. But remember - if you wreck it, the repairs are your responsibility.
• Buy cars that are cheaper to insure. It stands to reason that cars that are hard to repair, expensive to repair, or likely to be stolen are much more expensive to insure than other cars. A Dodge Viper, for example, is a really nice car, but it’s made of fiberglass and repairs are costly. And people do like to steal them. If you must drive a Viper, be aware that it’s going to cost you a fortune to insure it. Don’t want to pay a lot? Drive something that’s cheaper to protect.
• Drive less. Many insurers provide discounts for drivers who drive only a few miles per year. It stands to reason - the more time you spend on the road, the more likely you are to get in an accident. If you don’t drive much or only use your car for commuting, find a policy that will provide a discount for it.

 

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