Sunday, 12 February 2012

How to Save Money on Car Insurance?

If you have a car, you certainly have car insurance. For many people, car insurance is one of the more costly aspects of their budget, and so it makes sense that you would be looking into ways to save money on your car insurance today. Car insurance is generally a fixed item on your budget, and it is a pretty large expense for most budgets, too. There may be some small adjustments you can make on your existing policy that can save you a small bundle of cash, or you may find that switching to a new policy is the better move.

A Word About Coverage
Many people today do not know what coverage they have on their auto policy, and they don't know what their state requirements for coverage are either. First, you will want to take a few minutes to research what your state's minimum coverage requirements are. Then you will want to look at what type of coverage is in place on your current policy. If your current policy shows coverage in excess of the state minimum requirement, you can consider reducing your coverage to the minimum required coverage. Keep in mind, however, that any amount not covered by your insurance in the event of an accident or damage to your car will fall on your shoulders to pay out-of-pocket. Many people do carry additional coverage for this reason, but there may still be room to trim down your coverage a bit to save money.

Adjust Your Deductible
Another option to consider is adjusting your deductible. The higher the amount you are willing to pay out of pocket for accidents and other damages to your vehicle, the lower your premium will be. It is common for many people to have a $250 or $500 deductible, but you can adjust this upward to save money on your premium. Be sure to have the full amount of the deductible stashed away in a savings account so you have access to it if you do need to file a claim.

Pay Up-Front
Most insurers today will provide you with the option to either pay your premium monthly, semi-annually or annually. It is most convenient and affordable for individuals to pay the premium monthly, and often this payment is made with a monthly auto-draft from your bank account. However, you may not be aware that insurers tack on a service charge each and every month for this convenience. You may be able to save about $3-5 per month by paying semi-annually or annually. This may not seem like a lot of cash, but over the course of the year, this amount does add up.

Shop Around
Many people today fall into a comfortable routine with their insurance company, and they often don't even consider their car insurance policy and its costs until they actually have to file a claim. The fact is, however, that many insurance companies adjust their rates regularly, and some experts’ advice shopping for rates every six to twelve months to ensure you don't overpay on your premium. There are some great price comparison sites online that allow you to compare rates with ease. Be sure, however, that you are comparing similar coverage’s against each other if you want to find the best deal.

Look For Discounts
Most insurance companies today offer a wide range of discounts on auto insurance policies. A common discount is for those people who also have a life insurance policy, renter's policy, homeowner's insurance policy with the same company. Consider asking about these discounts as a way to save money. Other discounts are available for students, for married couples, for individuals over the age of 25, and more. Some will also offer you a discount for taking a driver's safety course, too. Some insurance agents will talk to you about the discounts when you get a quote, but if not, you do want to be proactive and ask about them yourself.

Trade Your Car In
The premium you pay on auto insurance is calculated by analysing a variety of factors such as your age, your driving history, the type of coverage you want, and your deductible. It also is dependent on vehicle-related factors such as the make, model, and year of your car as well as safety equipment installed in the car, too. Some vehicles simply cost more to insure than others. If you have been considering trading your car in, spend some time researching which models are most affordable to ensure. Narrow down your options to your top three or four cars, and get specific quotes from your insurance company on the coverage amounts for these vehicles. You may be surprised how much money you can save on insurance by choosing one specific car over another one.

As you can see, there are many different steps you can take today to save money on your car insurance. Consider putting some of these tips to use today for great savings.

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