Have you ever put your auto insurance on autopilot, despite everything else? If you’ve done it, it’s not your fault. Many people do it. Insurance companies are used to it. This is how they make more money by increasing your rates over time.
It might be time to review your policy and see if there are other options that could save you significant amounts of money in the coming year.
These 10 tips will help you decide if you’re paying too much for your auto insurance.
- Request higher deductibles. Your auto insurance deductible refers to the amount that you agree to pay upfront before your insurer pays its share of damages. Ask about raising your deductible to $200 to $500. You might be amazed at the savings you could make each year. You could save as much as 15%-30% on your collision and comprehensive insurance. You may be able reduce your deductible by increasing it to $1,000. This could allow you to lower the cost of collision and comprehensive coverage by at least 40%.
- Don’t pay for coverage that you don’t use. Are you an old-timer driver? Consider dropping collision and/or comprehensive coverage altogether. Why pay a premium when the car’s actual value is greater than it is? Check out the actual value of your car online. Edmunds.com makes it easy.
- Do not pay double for medical coverage if you already have decent health, life, and/or disability insurance policies. You can just purchase the minimum personal injury protection your state requires.
- Do not buy a car that thieves love to steal. Insuring a car popular with car thieves is more costly. ConsumerAffairs.com has statistics. Don’t buy a car you can’t afford to fix.
- Drive less. Low-mileage discounts are offered by many insurance companies to drivers who meet certain criteria. You might be able to save gas and insurance if you carpool to work. You’ll also have less wear on your car. Many cities have reserved express lanes on the interstate/freeway for carpoolers. This will allow you to get to work quicker. Find out if you are eligible by calling your insurance company.
- Safety features can also save money. Do you know that cars with anti-lock brakes, daytime running lights and automatic seat belts can get discounts? You can also save money if your car has an approved alarm system.
- Your teenager should be on your policy. Teens shouldn’t be on their own policies. It is too expensive. Another thing to remember about teens is that if they are decent graduates and have completed a driver’s training course, they can also get a lower rate. If your teen travels more than 100 miles to college, they may be eligible for additional discounts, provided they don’t drive their car.
- All your vehicles can be insured by one company. Many insurance companies are happy to accept your premiums for multiple cars. You’ll also save more if you purchase homeowner’s or life insurance.
- Ask yourself this simple question: What other discounts are available? You might be eligible for a discount if your age is over 50 or you are retired. If your records don’t have any accidents or points, you may qualify for a safe driver discount. Or, if your carrier has a long-standing customer, you can save money.
- Consider your options before you pay extra for roadside assistance. The truth is that getting towed could increase your premium or affect your eligibility for insurance. You might also have coverage through your credit card. You can check it out. Sometimes, getting roadside assistance from an independent company is the best deal.