Car insurance is a must have; the exorbitant price tag that goes along with it is not. There are ways to save money on auto insurance, consumers just have to be resourceful and do some research before they sign up with a provider that may not offer the best deal. In fact, recent data from Carinsurance.com found that the national average cost for one year of auto insurance premiums so far in 2010 is $1,566.
In order to save drivers a little dough, the Insurance Information Institute, otherwise known as the III, created a list of nine ways to save money on car insurance. Let’s take at look at the list:
- Shop Around. When looking for insurance try to get at least three different quotes from three different companies. You can access this information on the Web or by calling the insurance providers directly. What’s more, your state insurance department may offer price quotes. Don’t be afraid to ask friends and family about the kind of insurance they have and what they pay. Their information can help you make an informed decision when it comes to buying car insurance.
- Before you buy a car, compare insurance costs. When buying a car, be sure to factor in the cost of insurance into your monthly car payment. In fact, insurance premiums are based, in part, on the cost of the vehicle. The III compiled a list of cars with reasonable insurance premiums at www.iihs.org.
- Ask for Higher Deductibles. By requesting higher deductibles you can lower your collision and comprehensive costs. But, ensure that you have enough money saved to pay for the deductible if you have to file a claim.
- Reduce Coverage on Older Cars. If your car is worth less than the premium, a high amount of coverage will only drive you into the poorhouse. Kelley’s Blue Book lists the current value of vehicles. The III advises that you review your coverage when it’s renewal time to make sure that your insurance needs haven’t changed.
- Buy Your Homeowners and Auto Coverage From the Same Insurer. It turns out that most insurance providers will give you a discount if you buy more than one type of insurance from them. Ask your homeowners or renters insurance provider what kind of deals they offer to repeat customers.
- Maintain a Good Credit Record. This is no-brainer. A good credit score will reduce your insurance costs and premiums dictated by the insurer. Check your credit report once a year.
- Take Advantage of Low Mileage Discounts. If you don’t drive that often, you could qualify for a discount. This discount also applies to drivers who car pool to work.
- Ask about Group Insurance. You may be able to find a plan through your employer, alumni group, veterans organization, or other associations. Ask within your association which insurers would offer a group discount.
- Seek Out Other Discounts. Insurers look favorably upon drivers who have never been in accidents or have little to no tickets. So, if you’re a safe driver without any moving violations you could be rewarded with a lower insurance rate or premium.