Auto Insurance - Saving Money Part 1
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People don’t like paying out money to cover themselves against eventualities that might never happen. To overcome resistance of this kind, you can take a number of steps to reduce the cost of your motor insurance. It is well worth taking them!
Shop around, rates vary
Before buying auto insurance go out and look for a number of quotes. You will be surprised at the variety of prices you come back with! Whilst seeking quotes, it is safer to get them in writing, especially if you go back to the same company and speak to another agent who confronts you with a vastly different quote. Rates change and companies sometimes become more and sometimes become less competitive, It pays to check around from time to time to see that you are paying the best prices available for your cover.
More than one car
If you are fortunate enough to be a two or more car family it will pay you to insure all your vehicles with the same company, when you do be sure to ask for a discount.
Include your home with your auto insurance
Often companies offer discounts if you insure your vehicle as well as your home with them. This includes tenants’ insurance. So if you notice your company is offering this service ask for a quote and see how much you save!
Different rates apply to different vehicles
If you are thinking of buying a new car check out what it is going to cost you to insure it! Some makes and models are considerably more expensive than others. This pricing is decided by statistics, thus if a particular make or model is involved in more accidents than a corresponding make or model you will have to pay more to insure it. The same applies if it is a favorite with car thieves. Frequently you will find that if you change your choice you will end up paying less money in premiums. It’s worth checking before buying!
Stay Present
Insurance companies hire people called actuaries. It is their job to assess risks. They think if you forget to renew your auto insurance or let it lapse, you are more likely to have an accident. Because of this they will charge you more. Lesson; insure you renew your insurance policy on time.
Reduce your deductible
In insurance parlance a deductible or an excess is the amount you are prepared to pay before the insurance company becomes liable to settle a claim, Deductibles apply to collision and comprehensive insurance. If you elect to pay a high deductible your premium will decrease. If you have a high excess and it can be as high as $1000 you will be expected to pay this amount, so in the case of small claims it is not going to be possible to make a claim at all. Sure, you’ll get a lower cost premium, but also be sure you can afford to settle at this level if the worst should ever happen.
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20 May 2008, 4:28 pm
The type of vehicle is a major factor as well. And I don’t just mean whether or not it’s a sports car. I have liability only on my truck, and it costs about $70/month. However, even better liability coverage on my scooters is only $120 for the whole year. A scooter does a lot less damage than a pickup truck.
Less 4 wheelers, more 2 wheelers.
05 June 2008, 3:08 pm
[...] Saving Money on Auto Insurance Part 1 - Although auto insurance is a must, it doesn’t have to be over [...]