The present times are not easy for many people financially due to the global economic meltdown and widespread job cuts in every country. Saving as much money as possible in every expense segment becomes quite imperative for everyone now. One of the crucial areas where a fair amount of money could be saved is car insurance. For people who own a car, the annual car insurance premiums form a significant portion of the yearly budget. Since a car is part of the modern lifestyle, you would not be able to escape car insurance but you could easily reduce its impact on your financial resources, if you follow a few simple tips for saving on car insurance.
Combine Health Insurance and Auto Insurance
If you would be able to prove to your auto insurance company that you are in great health condition, then the insurance premium rate quoted by the insurer would be much lower. A healthy person is much less likely to be adversely affected in an accident than a sick person. When you combine your health insurance with your auto insurance, you would be able to do away with coverages like medical coverage and personal injury protection or PIP. This would result in a substantially lower premium on your auto insurance. Wherever possible, link your health insurance with auto insurance and you would find that your auto insurance costs are much lesser.
One other important point in auto insurance is the recommendation by the insurance agents about roadside assistance. They would try to frighten you that you could be stranded on the road for hours due to a minor fault and immediate help might not be forthcoming. The extra cost for this facility in your insurance policy could amount to another $60 or $90. When cell phones had become personal possessions now, you could save this money easily by storing the phone numbers of auto service stations in the areas that you are likely to frequent.
Your credit score is taken seriously by auto insurance companies. If you are paying your bills promptly, your higher credit record would enhance your chances of obtaining lower premiums on your car insurance. As such, you should continuously strive to improve your credit score by paying your bills and other debt payments in time.
Higher deductibles do play an important role in the quotes offered by the insurance companies. If you opt for a higher deductible, you would be able to compensate it by the savings on the reduced monthly insurance premiums.
If possible, try car pooling and public transport as much as possible. The less you drive each day, the lower the premium offered by the insurance companies. If you would be able to prove to the insurer that you would not be using your car too much, then it would create a huge impression and would result in substantial savings in car insurance rates. This would also save you money on your fuel and maintenance charges for your car, resulting in a significant overall savings.