Car insurance may be a requirement by law today, but that doesn’t mean you have to pay top dollar to drive safely. By knowing how to shop smart for your insurance, you can find dozens of ways to save a buck or two. The savings will add up significantly over a year’s time, and the effort it took to find the bargain rates will be well worth it. This article will offer tips for saving on car insurance premiums by attacking the issue from many different angles.
Shop and Compare
Many people take the insurance premiums offered by their current company because they assume those rates are set by the state of Pennsylvania. That is actually not the case. While location plays a part in determining car insurance rates, companies can vary in their prices by quite a bit. Rates also fluctuate from individual to individual, because many factors are considered when determining insurance premiums. Most locations have numerous insurance companies to choose from, and each of those companies uses numerous factors to set prices. It is worth your while to contact a number of companies for quotes to see where the best deal is waiting.
Learn about Discounts
Insurance companies offer a host of discounts for anything from a clean driving record to your occupation. Learn what your specific discounts might be before calling insurance companies for quotes. It may be as simple as the fact you are a female in her 30s who drives a family sedan a few miles a week. When you call insurance companies, make sure you provide all of the potential discount information so you can compare apples to apples with the companies you choose.
Even the way you pay your premiums will influence how much you are charged. For example, drivers who take out annual policies will tend to pay less than those who only sign on the dotted line for six months. Paying in one lump sum may also save a processing charge by the company. By the same token, having payments taken out of your account directly can actually be cheaper than sending a check in the mail each month. In addition to saving on postage, you may avoid a processing fee that can run as high as $5 per check sent. The amount can add up significantly over a year’s time.
Saving on your insurance premiums is not difficult, but it may take a bit of initiative on your part. By shopping around and asking the right questions, you can get sufficient protection for you and your vehicle without breaking the bank.