The continuing high level of job cuts in the United States and the peak unemployment rate at around 10% had resulted in huge financial burden on families in every state in US. Iowa is no exception. People had been forced to cut down on many expenses that were perceived normal previously. However, driving to work and back to home could not be avoided at all. Auto insurance costs are a substantial portion in the family budget of any home. Since auto insurance is a compulsory expense, you should know a few tips for saving on car insurance.
Combining Other Insurance Policies with Car Insurance
When you purchase all your insurance policies like life insurance, car insurance, home insurance, and health insurance from the same insurance company, you would be able to save up to 15% on your insurance premium amounts. In particular, when you combine your health insurance with your car insurance, the insurance company would be able to assess your health condition and offer you lower premium quote. You would also be able to dispense with certain other coverages like medical coverage, personal injury protection or PIP, etc. which would result in lower car insurance premium. Linking health insurance with car insurance is one of the best methods in saving on car insurance.
Most of the car insurance agents would advise you to opt for roadside assistance. They would tell you that you could find yourself stranded on the road even if a minor fault occurs in the car and obtaining immediate help might not be possible. The cost of insuring for roadside assistance would cost between $60 and $90 normally. If you are able to store the phone numbers of various auto workshops in the areas that you would be driving generally, then this cost could be easily saved.
Insurance companies give high priority to your credit rating. If you are prompt in your debt payments and maintain a low debt-to-income ratio, the insurance company would offer you lower premium quotes. Even if your credit rating is not that good at present, you should try to improve it by paying the insurance premium amounts and other monthly payments without delay or default. Your credit score would automatically improve and you would be able to get better car insurance rates when the policy comes up for renewal the next time.
If you agree to pay higher deductibles, insurance companies would offer you lower car insurance premium rates. The saving on this count would generally offset the higher deductible amount that you had committed. In case you had not been involved in any accident during the policy period, the entire lower amount would be a complete saving. Similarly, if you provide the number of miles you would be driving every day, the insurance company would consider lower car insurance premiums, if it is convinced that you would not be driving too much. If you had to really drive a long distance to your work, you could consider public transport or car pooling.