How to Save Money on Auto Insurance






If you’re trying to find ways to save money on car insurance — you’re in luck! There are plenty of ways to save money, without putting a lot of effort into it. Keep reading to find out how simple it can be to save money on your auto insurance.

Insurance: Everyone needs it (auto insurance is required in most states), but it’s an expense most people wish they didn’t have to pay. Despite this fact, we all have to pay for coverage. However, car insurance doesn’t have to cost a lot.

Here are a few suggestions for ways to save money on your auto insurance premium:

Quotes

Your personal insurance costs vary from company to company – this is because insurance companies use different rating methods for calculating your premium. You need to find out from a minimum of three insurance providers.

Tip: Avoid shopping on price alone – shop for the best plan, coverage and customer service options to suit your needs (for the best price you can find).

 

Minimum Coverage

Every state has a minimum coverage requirement. Therefore, every driver in that state needs to have at a minimum amount of liability coverage in order to be considered legal to operate a motor vehicle (in that state). Subsequently, if you are not required (by a lender or dealership) to pay for comprehensive — you could drop your coverage down to the minimum required by law in your state, in order to save money on your bill. Keep in mind; however, it’s important to have adequate coverage. If you are not adequately covered, it could wind up costing you astronomical out-of-pocket fees and expenses to pay for the damages.

Find out if your vehicle is worth the cost of your insurance by determining your car’s value (Kelley Blue Book online is a good place to start!), calculating your annual insurance costs, and figuring out your potential loss factor.

Rule of Thumb: If your vehicle is more than 15 years old, it’s probably okay to drop your coverage down to liability.

Vehicle

The car, van, truck or motorcycle (etc.) you drive can really have an impact on your auto insurance rates. Factors that play a role in your vehicle’s insurance costs include:

  • Costly to repair – If your vehicle can be easily damaged or has parts that are expensive to replace — it can increase your car insurance bill.

How to Fix: Install safety features such as, ABS, air bags, etc. to get a safety discount OR buy a car with these safety features and with high safety ratings. Check with the Insurance Institute for Highway Safety or IIHS, you can find ratings for most cars based on safety features.

  • High theft rate – If your vehicle is on several lists of the “Most Stolen Vehicles” — chances are your car insurance will be more expensive.

How to Fix: Install theft deterrent devices such as, an alarm or security system to get a discount for added security features OR buy a vehicle that has these safety features and one that has been ranked high by the IIHS.


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