Cheap car insurance almost has as much value as getting an inexpensive but quality car. You only pay for your car once, but you renew and pay for your car insurance every year. If you can keep insurance payments low, it will be a big help amidst the recession.
Here are a few tips on how to reduce your car insurance.
Multiple-car discount
You could pay the same amount in insuring two vehicles. Maybe not really the same amount, but you can indeed insure another car for less than what you may assume. Ask your insurer if you can get this kind of discount on your insurance. If you want to sell a second vehicle, do not do so before calling your insurance company. People have been shocked to learn that their insurance rates did not decrease after taking a vehicle off of their insurance.
Group discount
There are companies that grant a discount on car insurance if you are associated with certain groups: college fraternities, social clubs, credit unions, or for having a certain credit card. Request a list of organization affiliations from your insurer.
Yearly Policies
Get a yearly policy instead of a six-month policy to stretch out your car-insurance savings. Rates on a yearly policy cannot be changed for a whole year unlike having it changed every six months. Chances are the policy change will not be to your favor.
Electronic Funds Transfer payments
A $5 charge often comes with mail payments but if you have payments automatically deducted, they may not charge you anything. These deductions could be made on your credit card. If you do EFT payments, there will be no need to worry if you have money in your bank account when payment is requested.
Car and Home or Renter’s Policies Combo
You could get a 5% to 20% discount on your car insurance if your auto and home or renter’s policies are under one company.
Credit Rating
Maintain a clean credit. For their own protection, insurance companies check your credit rating and tailor your policy according to the state of your credit. If your credit is not in such good shape, you could buy a car insurance policy from a company that does not check its clients’ credit rating.
Defensive-driving course
You could get a discount on your insurance if you have attended a defensive-driving course. Find out from your state insurance commissioner or insurance company if you qualify, then see where you could take such a course.
