1. The type of car you drive can cost you more money.
This probably isn’t a secret because we all know it costs more to replace a Mercedes than a Kia. People often fail to keep this in mind when shopping for cars, however. Contact your agent PRIOR to looking for that next luxury car so there is no sticker shock when you get the new insurance quote.
2. Having multiple vehicles on a policy can offer you discounts.
Especially if you have more vehicles than drivers on a policy because you can only drive one car at a time.
3. Having multiple types of insurance with a single provider can also save you money.
Talk to your agent about consolidating your homeowners or renters policy into one plan.
4. Make sure you aren’t paying for double coverage.
For example if you have an Auto Club membership such as AAA, make sure you do not have a similar type of plan on your insurance policy that covers towing or road side assistance. When we checked, we realized that my wife was not only covered by our AAA Membership, but also her Honda Extended Warranty, AND we were paying our insurance company for this. Later, we were offered free road side assistance from our Credit Union that we do our business banking with, so we have even more coverage and don’t have to pay for it.
5. If you can afford to pay your insurance annually or semi-annually, this can save you the monthly service fees.
Don’t worry about if you don’t think you will stay with the carrier, or move out of state. As soon as you cancel (in writing), you will be refunded the difference in what you have paid and what is left on the policy.
6. Always get multiple quotes for your car insurance.
It won’t cost you any money, but it can save you hundreds per year.
7. Check your comprehensive coverage.
This is coverage for things such as theft, vandalism, natural disasters, etc. and is usually not required, but it is often recommended. Look at what you are paying and what is covered to determine if it makes sense. Also, if you are driving a “budget-beater” that is of little value, this money might better be used to save towards a down payment on a newer car.
8. Look into raising your deductibles.
The lower your deductible is, the higher your insurance will be. Discuss the options with your agent, but most of all, make sure you feel that you are being educated as to how the different amounts really affect you. Make sure you are comfortable with higher deductibles, as you will pay less up front, but more out of pocket in the event of an incident. One question to ask yourself is how much would you pay out of pocket before filing a claim, knowing that your premium could (and most likely would) increase. Most people don’t think about that, and opt for lower deductibles thinking they are better covered.
9. Know your coverage limits.
Most states set minimum standards for liability coverage such as $15,000 per person, $30,000 per incident, and $10,000 for property damage. On your policy this would be written as 15/30/10. While having the state minimums will cost you the least in terms of your policy, make sure you know what this means and you are comfortable with it. For example, years ago I totaled my car when I ran into the back of a truck. The truck sustained $500 worth of damage and I got to experience an air bag first hand. This is when I really began to understand what insurance coverage was all about. In the words of my agent, “be glad you didn’t total a Mercedes… you would have been sued for the difference.” What I learned was that I was liable for the difference in what I was covered for and the damage I did. I now carry $50,000 in property damage coverage as opposed to my states minimum of $10,000.
10. Install a theft-tracking device such as LoJack.
Some companies offer reduced rate for having this because the likelihood of recovering the vehicle in the event of a theft is much higher.
11. Be a safe driver.
The better your driving record is, the lower your premiums will be due to the perceived risks from a driver with a history of speeding tickets or accidents.
