Let’s face it; auto insurance companies don’t want to hand out big cash payouts to you if you are in a car crash, or if your vehicle gets stolen. And as consumers, most of their customers make it relatively effortless for them. Most people never read the fine print; neither do they take the trouble to understand their insurance policy and its associated cover.
Here are some tips to help you save a lot of money on your auto insurance bills.
Request higher deductibles
In the event of a crash, the deductible is the amount of money you have to come up with before your auto insurance company does. Increasing your deductibles from $200, to $500 can save you 15 percent of the cost of your collision and comprehensive cover. Push it to $1,000, and you save a whooping 40 percent! This practice makes a lot of financial sense to someone who hasn’t been in an accident in the past few years, and who is generally a safe defensive driver; you will end up saving a lot more this way.
Dump coverage you don’t need:
If you drive an old car, the coverage you get on collision and/or comprehensive coverage will not be worth it as any claim you make, will not exceed the combined cost of your insurance premium and your deductible amount. It’s best to evaluate the situation and drop cover you don’t require.
Avoid duplicate cover
Paying for cover you already have elsewhere, is paying the insurance company those extra dollars for nothing. If you have a good health care package (and you absolutely must), you don’t need medical insurance bundled with your auto insurance. Always avoid duplicate cover, all it leads to is a double premium, for the cover of one.
Smart purchases
Purchase a car based on your needs, a more flamboyant car will not only attract more unwanted attention from car burglars, but also a higher showroom cost, higher gas bills, and most of all, higher insurance premiums. Always consider cost of repair when purchasing a new car.
Safety/Anti-theft devices
An anti theft system in your car makes it more difficult to steal, which is good news for your insurance company in terms of finances, and they will share this with you, by means of a discount.
Seek discounts for teens / the elderly / armed forces / teachers
Many insurance companies offer discounts for varied groups of people, ask for it, don’t expect your insurance company to tell you how you can pay them less.
Roadside assistance
Avoid taking out roadside assistance from your insurance company, it takes a toll on your insurance premium. Look for a plan elsewhere, a simple tow could result in you not being eligible for certain types of coverage.
Switch insurance companies
Another easy means to chop your bills down to size is to hunt for an auto insurer who can offer you a better deal. Always take all your insurance policies from the same company; it gives you a chance to qualify for their customer loyalty programs.
Avoid insurance fraud
It’s a common practice for people to register their vehicles on the names of relatives who live in safer neighborhoods, or with a better credit rating to save on insurance premiums, bear in mind, it’s illegal.
