How I Save Money on Auto Insurance
Similar to the work I do every year when I make my annual phone call to the customer retention 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?
i agree with the tips you hav shared to share money on auto insurance. i would like to add one tip to it that we can also save some amount by controlling our expenses through credit card….because it is one of the factor that influences the rates of our insurance premium:)
You can also check your credit score for errors. Credit scores are used in insurance calculations and can increase insurance premiums.
Good call Bryan!
Thankfully our insurance is included with our car-sharing program! When we had a car and had to pay insurance, it added up to about $200 per month – we spend less than that in total using car sharing.
@Joe We have one insurer. Can you say “competition”? 🙂 I think there are private providers if you get additional insurance but if you shop around for that you’re just getting a discount on a needless cost.
We went in earlier this year and tried to see if we could get a higher deductible and lower premiums. After about the 5th time asking they finally stopped saying “sure, you can lower your deductible to $100” and told us it’s not an option. 🙁
I wish Ontario had public insurance. We’re just lambs to the slaughter in our oligopolist insurance system. The government literally guarantees a 10% return for insurance companies. No protections for you or me.
Yeah, for sure Joe. I think the only thing we can do is shop around and continue to look for and ask for, discounts. Oh yes, drive safely as well 🙂
Here in BC we can’t shop around for auto insurance, but I do have the highest monthly premium. Beyond that I don’t really do anything else to save money on car insurance. Unfortunately I somewhat just have to accept how much they’re going to charge.
Hey, what do you mean you can’t shop around for insurance? Unfortunately, we all have to pay auto insurance but I think anything you can do to lower your premiums is worth the effort.
I have a question to ask as I am trying to learn this financial stuff. People say we are in a bear market. Can you suggest some things for me to read to gain some knowledge on this. I’m not testing you, just trying to learn. Thanks in advance. Some other bloggers can also advise some info.
I will try and write a post about, the things I am doing in this bear market.
I can’t speak for others, but I have my own approach that should work just fine for as long as this bear market continues. Maybe a few more years. The good part is, in a bear market, some equities are cheaper. You can buy stocks at a lower price, and more of them. Thoughts?
If you’re not comfortable with direct stock ownership there are some great ETFs offered by iShares that make investing a breeze in my opinion.