Saving money on your car insurance is easier than you think. While you must keep the mandatory coverage that is required by law in your state, there are some tips that you can incorporate when you purchase you car insurance or next time you are up for renewal.
The best place to start is to find out exactly what the types and minimum amounts of liability coverage that are required to drive in the state of Alabama. Once you are aware of what your base coverage requirement are it will help you to adjust your additional coverage needs accordingly.
The best tip for saving on your insurance rates is to shop around. You will be surprised at how the rates may fluctuate for the same amount of coverage. Just make sure that you are purchasing your policy through a reputable insurer who is going to be there when you really need them. Talk with your friends and family members to see which companies they use and get their feedback on how the insurers they use process claims and how often they raise rates, etc.
Using the internet to compare rates between companies will give you the most feedback in the shortest amount of time. Input your information on the site of one of the companies who obtain your insurance criteria and then match it up with a number of different companies. They will either provide you with local contact information or provide you directly with rate comparisons. When you know what your coverage needs are in advance this will work like a charm. But you should always speak to an insurance agent in your area if you are unclear about any of the details of the coverage.
You don’t have to do a lot to start saving money right away. For example you can save a few bucks just by raising one of more of your deductible amounts. Simply by increasing your out of pocket expenses from $250 to $500 on just one deductible will save you up to 10 percent a year. So if your annual car insurance premium runs around $1,200 you could save about $120 without changing your coverage.
You may be wasting your time if you are carrying collision coverage on an older vehicle that is not worth it. If your car isn’t valued at more than $2,000 dropping your collision coverage is a smart way to save some money without affecting the primary coverage that you need. It may cost close to what you are paying for a deductible to repair your vehicle if it is damaged in an accident.
There are any number of discounts available and new ones popping up all the time. Insurance companies are eager to get your business so check with your agent or carrier to see if they offer any discounts for keeping your mileage down each year, having a safer car, keeping your driving record clean and even for keeping your grades up and being a good student.
Another simple measure that many people overlook when trying to save money on their insurance rates is to check over your policy for errors when you first get it. Then make sure that you update your information upon renewal. Things change from year to year –and sometimes sooner than that – so let your insurance agent know so your premiums will reflect these changes.