Similar to the work I do every year when I make my annual phone call to the customer retentions department at my favourite telecommunications company, I also review my auto insurance policy every year to inquire about saving some cash. When it comes to auto insurance, just like other services and protection I pay for, I want to ensure I’m getting value for my dollar. With auto insurance, you hope to avoid making a claim but if you need to, there is comfort in knowing you’ll get the best possible coverage for premiums paid. Here are ways I save money on auto insurance. I hope these tips help you as well.
- The internet is a marvellous thing so use it to your advantage – shop around! Get some free online car insurance quotes and see if you’re overpaying in comparison to other companies based on existing similar coverage.
- If you have multiple vehicles, put them under the same insurance carrier. If you don’t do this, you could be missing out on some discounts. We’ve done this for years and it saves us money.
- Get home and contents insurance with the same insurance carrier as your auto insurance. Again, more discounts. If you’re not getting discounts from bundling your policies ask your insurance carrier why not.
- Increase your deductible. Hopefully you are not using auto insurance unless a major event/expense occurs. I believe insurance is largely for things you cannot afford to pay when bad things happen to good people. Make your deductible as high as you can tolerate to keep your premiums low. Ask your carrier about this.
- Avoid paying your premiums monthly, unless of course, there are no additional costs to do so. Many companies have surcharges associated with a monthly payment plan. Avoid paying more money unless you find the monthly plan really helps you organize the rest of your monthly budget. The few dollars here and there might be worth that.
- Keep an older car. Yeah, a rather cheap way to save money on auto insurance but the older my car gets the lower my premiums get. In January 2013 my car will be 13 years old. My car still runs well – knock on wood – and saves me money in premiums in comparison to newer vehicles.
- Maintain a good credit history. Increasingly, insurers are using credit information to price your auto insurance policy. Using credit is great as long as it is managed. Check your credit history every couple of years to ensure there are no errors. This way, when you shop around or go to renew your policy, you might be able to lower your premiums.
- Keep your commute short. The less distance you travel every year, the less liability you have and the cheaper your insurance premiums should be.
- When in doubt, ask for a discount! Whether it’s for a good driving record, low driving mileage or being a faithful customer you might be surprised what they can do for you. I think the worst thing your insurance carrier will tell you is “no”.
Anything you do to save money on your existing auto insurance?
Have you found a good deal recently for auto insurance?