Auto Insurance Saving Tips

Highlights

  • Compare multiple insurance quotes
  • Consider increasing deductible
  • Drop coverage on old cars
  • Avoid unnecessary coverage
  • Know what discounts are available
  • Maintain good credit
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Tips to Save on Your Auto Insurance

One of the easiest ways to reduce your monthly expenses is to look at how much you are paying for your auto insurance.  It could be very well be possible that you are paying too much for insurance and that another provider may provide you with a better rate.  With the Internet now, you can easily compare in a few minutes what you are paying now with quotes directly from providers such as GEICO, Progressive, State Farm, All State, Farmers, and more.  Follow these quick tips below and comparison shop here at Bills.com to get your best auto insurance rate.

Shop Around
Insurance rates can change frequently so it pays to compare your auto policy with quotes from at least 3 providers.  Request the same coverage across multiple providers to compare things apples to apples and to ensure that you are getting best rate.  You may also want to get quotes from independent agents who sell insurance policies from multiple companies to see if they can offer a better rate than a direct insurer or an affiliated insurance agent.

When shopping for auto insurance, be wary of companies offering very low insurance premiums.  You may want to check the BBB or your state's department of insurance for any consumer complaints.  In general, we recommend going with a company in good financial standing.   You can check the credit rating of the company by visiting Standard & Poors, A.M. Best, or Moody's.

Increase Your Deductibles
Your collision and comprehensive coverage options include a deductible, the amount you pay out of pocket for repairs before the insurance company begins paying.  Increasing your deductible can lead to significant savings because the insurance company assumes less risk.  Generally speaking, raising your deductible from $200 to $500 could save up to 30% and increasing it to $1,000 could reduce your premiums by as much as 40%.  If you are able to afford a higher payment in the event of an accident, it may be worth increasing your deductible to reduce your monthly expenses.

Dropping Coverage on Old Cars
If your have an older car or a car with low value, it may not be cost effective to insure it with both collision and comprehensive.   Consider dropping collision coverage or both.

Avoid unnecessary coverage
Avoid paying for unnecessary coverage by reviewing your auto policy.  For example, you may want to consider dropping roadside assistance from your auto insurance plan if you are receiving this service from belonging to a motor club like AAA.  You may also look to drop rental-reimbursement coverage if you have two cars.  This coverage covers the cost for securing alternative transportation such as rental car, taxi, bus, etc.

Ask for Discounts
Insurance providers offer numerous discounts that you may not be aware you qualify for.  Discounts also vary by company, so it makes sense to know what all the available discounts are and how much savings they provide.  Some common discounts to ask for are good driver, multi policy discount, multi car discount, anti theft and anti lock brakes discount, and defensive driving discount.

Credit
Credit is often used as a factor to determine your insurance premiums.  If you have good credit, maintain your credit rating by continuing to pay your bills on time and keep your debt amount low.  Regularly review your credit report and remove any errors.

Check Insurance Prices Before Buying a Car
Before buying a new or used car, consider the cost of insuring the vehicle by getting multiple quotes.  A more expensive car will cost more to insure because it is more costly to repair.  Cars with a high likelihood of auto theft or auto accidents will also result in a higher insurance premium.  Keep these factors in mind when deciding between different car models.

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