We all need car insurance these days and what is more everybody loves saving money. So if we speak about an insurance you should understand that there are tons of opportunities to save money on auto insurance, you should only read the following tips and follow them.
Compare: Feel free to visit as many insurers as you want, because prices really differs. Numerous companies offer really significant discounts and quotes. This industry is very competitive and you have a huge assortment of companies to choose from.
Reputation: Always find everything you can about reputation of the company you would like to deal with. Ask questions, read reviews and pay attention to ratings.
Higher deductibles: Try your best to opt for the highest deductible possible. A deductible is an amount that you pay when you get into a wreck or crash.
Package: Pay attention to a package of insurances. I mean, many insurers offer package discounts if you carry both policies with them.
Discounts: There are periodical, seasonal or holidays discounts. Most insurers offer a wide variety of discounts.
Telematics: There are a growing number of insurance firms that are offering a “telematics” or “black box” insurance policy. This basically requires the driver to have a GPS device installed in the car to track how the vehicle is being driven. This actually helps to reduce the cost of car insurance and will continue to do so as long as the motorist drives well and safely. Sat Nav technology has revolutionized car insurance.
- Find out if you qualify for any group plans. For example, if you are an alumnus of a college or university, or a member of a professional organization, you may qualify for an affinity discount or a special group plan with one or more insurance companies.
- In the long run, it often doesn’t pay to switch insurance companies, especially if you do it a lot. Insurance rates may go up and down—usually up—each year, and if you switch companies for a lower rate you may find that your rates increase even higher at the next policy renewal. In addition, if you stick with a company for several years, you may become eligible for a “long-term” discount. Additionally, you may earn “accident forgiveness” as a long-term customer, so that if you get into an accident, your premiums won’t rise.
- Make your child earn driving privileges by getting good grades. If you do allow your son or daughter to get a drivers license, insist he or she get good grades in school. The “good student” discount can save you up to 20% or more off the rate you pay for a child. A “B” average (3.0 GPA) is usually required to qualify.
- Don’t be afraid to get a second opinion. Not sure if you need the coverage your agent advises you to have? Check with another agent or your attorney for advice.
- Review your policy at each renewal. Make sure that all your discounts still apply, and check to see if you may be eligible for additional discounts. Sometimes discounts need to be certified each year(“good student” discounts, for example) and sometimes a computer glitch will accidentally drop a discount from your policy.
- Keep your insurance policy up-to-date. A lot of variables affect your insurance rates. So, if your situation changes, you’ll want to make sure your policy reflects that. If you get married, if you’ve moved, if your commute to work has changed, or if you’ve installed a car alarm, for example, your rates may be reduced. Keep in mind, however, that if your commute is longer, or if you’ve moved to a neighborhood with higher loss rates, your price could go up.
- Don’t lie to your insurance agent. Insurance companies check your accidents, tickets and some other information on a national database, so if your rates go up because of an accident, you can’t just switch to another company for a lower rate. If you lie to your insurance company or omit to tell them about something that affects the rate (a young driver in your household, for example,) this could be considered a “material misrepresentation” and any claim you make may be denied.
- Do not exclude a driver from your policy unless you can be absolutely certain that he or she will never drive your vehicle. If the excluded driver gets into an accident, you will have no coverage and will be responsible for paying for your own repairs and any liability to others.
- Never drive without insurance. Driving without insurance is illegal in almost all jurisdictions, and the fines and increased insurance costs can be staggering. If you get into an accident while uninsured you will have to pay out of pocket for any injuries or property damage you are responsible for.
- Make sure you are adequately covered. While lowering your liability coverage limits or declining injury protection may save you money, the decision might be unwise. Many people don’t carry enough liability coverage as it is. Remember, if you’re liable for injuring someone, the medical costs could reach hundreds of thousands of dollars, and if you can’t pay those costs, you could be sued and have your wages garnished or your assets (including your home) taken. Discuss your coverage with your insurance agent or attorney, especially if you’re thinking of making any changes.
- When it comes to buying insurance, deal with a reputable auto insurance firm. You can always check their Insurance Bureau rating before purchasing insurance from them, and you can find out about complaints (and file one, if necessary) by contacting your state’s insurance commissioner.
H/T Source: wikiHow