More car insurance savings tips

As we discussed in our previous article on car insurance savings, there are ways to avoid spending any more money than you have to. And you do have to; it’s required by law in most states that you have insurance coverage. It is not required that you spend any more money than is necessary. We covered the most basic tips - shopping around for a good deal, raising your deductible, and dropping expensive collision insurance from your policy. Are there other ways to save?

Of course there are. Here are some more ways to save money on your car insurance:

• Check your credit report - You must think that’s a typo, but it is correct. Insurance companies, like credit card companies, think that their money is at risk when they deal with people with poor credit. You should check your credit report regularly; after all, your insurance company is doing just that. And if you pay someone late, like the phone company or electric company, your insurance company may raise your premiums. It sounds unreasonable, and frankly, it is. But it is legal. Pay your bills on time. Make sure that your credit report reflects that, and then shop around for a deal.
• Safety equipment discounts - Most companies, but not all, provide discounts for certain installed pieces of safety equipment. This will include antilock brakes, air bags and perhaps anti-theft devices in the case of certain types of cars. Discounts may vary from company to company and from state to state, so be sure to shop around.

• Group discounts - Various group discounts may be available to you if you are a member of any one of a number of organizations. Such groups may include the American Automobile Association, the American Association of Retired Persons, and many others. If you aren’t sure, check with your insurance agent.
• Miscellaneous offers - Every insurance company has their own list of things for which they will provide discounts. The list is long, and it may not be obvious. The only way is to find out. Some companies will reward you for having multiple policies with them, such as life or home insurance in addition to vehicle coverage. Others will reward you for so many years of safe driving. If you haven’t been costing them money in claims, they’ll reduce your premiums. Many companies will give discounts for young drivers who have completed certified drivers education courses. The list goes on and on, and the only way to know is to ask.

There are many ways to save on your coverage, and no article could produce a complete list. Each company has their own list and their own reasons for offering discounts. The biggest savings will be from simply agreeing not to cover certain things, such as not buying collision coverage for a 20 year old car. But every little bit of savings adds up, so shop carefully.

 

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