Everyone wants to lower their auto insurance. While there are some things that are out of your control in regards to the cost of insurance, here are a few tips and tricks you can use to keep your costs as low as possible.
Same Company, More Insurance. First of all, try combining multiple lines of insurance with one company. Most companies will offer discounts on your auto insurance if you also have your homeowners, renters, life, or boat insurance with the same company. If you have multiple companies providing you and your family insurance on various things, it may be advantageous to consider consolidating to one insurance company.
Discounts, Discounts, and More Discounts. The insurance industry is extremely competitive (consider the amount of Progressive, Allstate, and Geico commercials you are bound to see with just an hour of television viewing). To stay competitive, insurance companies offer discounts for a safe driving history, driver’s education, for your kid’s good grades, and a slew of other factors. Ask your agent about these types of discounts which include benefits for students, seniors, persons in the military, farmers, etc. Go online to various websites to see if you qualify for any special promotions or discounts.
You might also qualify for auto discounts by being a member of certain business, social or professional organizations. Examples of groups that often have an insurance discount agreement include AAA, AARP, fraternal organizations, alumni associations, credit union memberships, medical organizations and others.
Change your Coverage. In addition, as a general rule, the higher your deductible, the lower your premiums your premiums will be. If you are willing to take on more risk by paying more out of pocket expenses should an accident occur, you will notice a drastic decrease in premium amounts. This is a major factor in your insurance rate. Decide if you feel comfortable bearing more of the risk on your own or if you prefer to share most of the burden through insurance coverage.
Life Events. Drivers can also get discounts for reaching certain age barriers (such as age 25) and life events such as getting married or buying a home. If any of these have occurred, or if it has been awhile since your last accident or speeding ticket, it might be time to get a new insurance quote to see if you qualify for cheaper coverage. Insurance companies offer quotes for free, so you will have invested nothing but your time in asking for a discount. As a note, remember to never cancel your current coverage until new coverage is fully in place.
This is a weekly featured post on Own The Dollar from Sara Peak, a Certified Financial Planner and a veteran of the finance industry. In addition to her monthly “Money Matters” column in Kentucky Living magazine, she also writes about money and personal finance topics on her blog.
Be sure to look for more great featured articles every week from Sara. If you have a question or topic that you would like for her to discuss, please contact us.