Saving money on auto insurance is easy; all you have to do is ask the right questions to make sure you are getting all the available discounts.
1. Bundle your insurance policies. The best way to save money on both your auto and home insurance is to bundle your policies with the same insurance company. The “Bundle Discount” can save you as much as 35% off your annual insurance premiums. If your homeowners insurance is with one company and your autos are insured with another, call and find out which company will give you the highest “Bundle Discount”, and best coverage.
2. Increasing your collision deductible. Increasing your deductible is not recommended for everyone. If you are a safe driver who has not had an accident in over 5 years, then you might want to consider increasing your collision deductible to help lower your premium. But, you need to remember to keep a little extra in the bank. That way if you have an at fault accident that additional deductible you will need to pay will not cause you financial hardship. Many of the top car insurance companies have “disappearing deductibles” for safe drivers.
3. Shop your auto insurance policy. Insurance companies are always changing their rates and discounts, so make sure that you or your agent is shopping your policy annually for the best coverage and rates. Your agent should be offering you an annual policy review as part of their service. If they aren’t, maybe it’s time to shop for a new agent.
4. Certain cars are more expensive to insure than others. If you are looking for a new car, get a quote from your agent on the different cars you are considering purchasing. The annual premium difference between a family sedan and a sports coupe can be as much as $200 per month. Usually the fewer the number of doors and the higher the horsepower, the more expensive the insurance. Make sure to include the cost of your auto insurance when you are considering how much car you can afford to buy.
5. Make sure you are getting all the available discounts. Did you know that most auto insurance policies offer discounts for certain professions, having a 4 year college degree, belonging to a Credit Union or having more than one car on a policy? With some companies the professional discount for Engineers, Scientists and Physicians can be as much as 15% off the annual auto premium. Make sure you ask your agent for a list of all the discounts your policy has available.
It will only take a few minutes of your time to review your insurance needs with your agent and make sure you are getting the lowest rate possible without lowering your limits of liability coverage. We never recommend that you lower your limits of liability protection as a way to save money on your auto insurance. Always have the highest limits of liability coverage you can afford. Make sure to read your auto insurance policy carefully because it may not offer similar discounts and coverage options as discussed in this blog.