What your auto insurance company doesn’t share with you could cost you a lot of money. Listed below are nine secrets that could save you more money on your auto insurance.
1. When to Drop Collision Insurance
Determine your car value by checking Kelley Blue Book values. When the value of your vehicle is worth less than $3500 consider the risk of dropping comprehensive and collision premiums from the policy. At this point the cost of having comprehensive and collision plus paying any deductibles due to any collision, theft or vandalism will out weigh the value of your vehicle.
Consider your financial status before making this decision. If you have funds needed to repair the car, drop the coverage. Otherwise keep these coverage’s until your finances are better. Consider keeping collision coverage if you still have an outstanding loan on a car. In fact most lenders require that you carry this coverage for the balance of the loan.
2. Bundling Auto & Homeowners Is Not Always Least Expensive
We have been always been told to bundle home and auto insurance to get a discount and save money. However by comparing rates with different carriers you may discover that having separate policies may save you money. Some insurance companies give better rates for auto and others give better rates for homeowners. but it’s infrequent to find the lowest rate for both from the same carrier. If you have an umbrella policy it is better to keep your policies together if they offer a discount.
3. Shop Around for Lower Rates
Most agencies only represent one carrier such as Allstate, State Farm, Geico etc. These agents do not have access or resources to compare quotes with multiple agencies. Some independent agents with have multiple agents, however not enough to really compare. Comparing and shopping for online car insurance like compare car insurance allows you to find the lowest rates for the deductibles and coverage you want compared side by side.
4. Discounts for Going Green
Some insurance companies are now offering discounts for going green, driving a hybrid can save money on your premiums. Insurance companies are saving money by asking customers to go paperless with electronic statements and payments, this allows the insurance companies to save money which is passed on to the consumer. This eventually reduces your premium.
6. Paying Your Own Claim and Not Reporting It
I know this is why we pay insurance, however some circumstances require calculation. If you backed into your spouse’s vehicle think twice about reporting this to your insurance company to repair it. If the damage is $1000 and your deductible is $500 you will still need to pay out of pocket for the deductible. Your rates will most likely go up at the time of renewal, and this incident will stay on your record for up to five years. The extra $500 in the beginning may end up costing you thousands more when you add up five years of renewals with a higher rate.
7. Some Cars Cost More to Insure
SUV and trucks will be expensive to insure, not only because it costs more to replace, but because it is heavy and will cause more damage to other vehicles involved in an accident. Plus, the SUV or truck has a much higher bumper, so the impact on a sedan will be in the body of the car instead of down on the bumper. New cars, sport cars and collectors cars will be more expensive to insure since their replacement values are much higher. Insurance companies use calculated software to determine how expensive it might be to pay a claim. That affects how much your premium will be. Another reason to shop around for the best deal.
8. Wait Until Your Teenager Is a Licensed Driver Before Insuring
Most insurance companies do not require you to insure your teenager until they are a licensed driver. They can drive with their permits and still be covered under your insurance policy. However, some policies may differ.
9. Minimum Liability Varies from State to State
Be careful getting the minimum liability requirements from certain states. States such as Ohio, Nevada, New Jersey, Pennsylvania, South Carolina, and Oklahoma mandated limits are absurdly low. If by chance you were in an bad accident with those minimums the coverage’s will not even come close to covering the costs. Remember why you are purchasing insurance in the first place.
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