Top Three Ways to Cut Insurance Costs

In this tough economy, everyone is looking for ways to lower insurance costs and save money. It is important to remember, however, that when cutting back on insurance costs, one should be sure not to make decisions that sacrifice good coverage for a lower cost. While it may be tempting to buy the absolute minimum cost policy, purchasing this policy will actually cost the driver money in the long run – especially if he or she is involved in a common but expensive car accident. Luckily, there are some great tips that one can follow in order to get great coverage at a lower rate.

Firstly, car owners should be aware that certain car models automatically qualify for a discount in insurance, while others will cause the owner to incur a hefty surcharge. While the makes and models of a particular car can cause a difference in insurance price, it is important to understand that this policy will vary from one insurance company to another. Those planning to buy a new or used car should make themselves aware of these policies and shop accordingly. For those who already own a car, certain other discounts may be available depending on a car’s feature. These include, but are not limited to, cars with alarm systems, cars with dual air bags, or cars that are insured under the same company as one’s home or other property. Car owners may also take certain actions to secure discounts such as taking a defensive driving course or being smoke or alcohol free.

Another great way for insurance policy holders to save money is to carefully read and understand the fine print of the current insurance policy. This should be read from time to time to insure that changes in the driver’s situation, such as marital status or age, or changes in the car’s condition are being accounted for. Insurance policies are not one size fits all, and they should not be treated as such. Sometimes, it is necessary to change policies or even to change companies, depending on the owner’s personal needs and individualized situation. If one is having trouble understanding this policy, having a trusted professional read over it or asking one of the insurance company’s representatives for help is often a wise move. Asking specific questions such as, “How does this change in my lifestyle or car condition affect my policy?” can be extremely helpful. It is also a good way to test one’s insurance company for honesty and accessibility, both important features.

Finally, policy holders can easily cut cost by increasing their deductibles for collision coverage and/or comprehensive coverage. Changing over to a higher deductible can often be a smart move and can sometimes cut premiums by anywhere from 10 to 30 percent, depending on the change in deductible and on certain individualized factors 

Of course, none of these changes should be made without proper research and understanding. One will also always want to be sure that the savings he or she is accumulating will be just as beneficial in the event of an accident.

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