10 Tips for Lower Car Insurance

If you have been paying the same rates for car insurance, for years — maybe it’s time you had a look at your policy. Everyone needs more money and with a few, simple changes, you can lower your car insurance costs, substantially. 

Tips to Save on Car Insurance

  1. Change your deductible amount – The deductible is the money, each policyholder is required to pay before the insurance will cover the rest. If you raise your deductible from $200 to $500, it could lower the cost of your insurance coverage by 15 to 30 percent. Furthermore, by raising the deductible to $1,000, your insurance premium can be at least 40 percent lower.
  2. Drop unnecessary coverage – If you have an older vehicle with a low Blue Book value, you may want to consider dropping your collision and/or comprehensive coverage. On older vehicles, this coverage simply isn’t worth the price because in most cases, the claim will not exceed the monthly insurance premium and the deductible amount. Therefore, you’re basically throwing your money away. Consider the minimum coverage for your older vehicle– liability. If you’d like to assess the current value of your car, visit Edmunds.com or Kelley Blue Book.
  3. Stop paying duplicate medical coverage – Many drivers already have solid life, health and disability insurance plans. Therefore, there’s no need to pay for duplicate coverage on your car insurance. Find out the minimum personal injury protection (PIP) for your state and drop any excess coverage.
  4. Drive less or carpool – A lot of insurance companies offer a “low-mileage discount’ to drivers who carpool or to those who drive fewer miles per year, than average. Contact your insurance provider to find out if you meet the requirements to qualify for this discount.
  5. Buy a “low-profile” vehicle – Insurance companies hike up the insurance premiums for vehicles that are costly to repair, popular with thieves or have a poor safety record. If you’d like to check out the risk levels for different vehicles, go to the website of the Insurance Institute for Highway Safety (older models are listed at the bottom of the page).
  6. Better safe than sorry – Many insurance companies offer special discounts to policyholders who drive vehicles with safety features (because it lowers the risk of getting in an accident). Therefore, vehicles with safety features such as, air bags, anti-lock brakes, and daytime running lights will have cheaper insurance rates. If your vehicle doesn’t have these safety features, you can have them installed or purchase a car that already has these features for lower car insurance premiums.
  7.  Get discounts for long-time drivers – It’s important that you are getting every discount that is available to you and the only way to do that is to contact your insurance company. Discounts are available to drivers who are older than 55 and/or retired; are safe drivers with no accidents in the last three years; and those who have been with the same insurance company for a long time.
  8. Get discounts for teens -Teens can get cheaper rates if they are put on their parents’ policy instead of opening a separate policy. Households with teenage drivers can get major discounts on their car insurance policies. Discounts to teens include Good Student discounts and Good Driver discounts (available by passing an approved drivers’ education course). In addition, college students who attend school that is more than 100 miles away and don’t bring their own vehicle can qualify for discounts, as well.
  9. Put your insurance in one basket – Most insurance companies offer a substantial discount for policyholders who insure all of their vehicles on one policy. In addition, the premium can be lower if you purchase your homeowners’ and life insurance policies from the same provider.

Consider the costs of roadside assistance – It may be a good idea to consider getting roadside assistance through another source, rather than through your auto insurance company. Many cell phone companies and major credit cards have roadside assistance for little to no cost, per year.

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