In a time when every American wants to spend less and save more, even important expenses are overlooked. Data from recent surveys have revealed that more drivers are considering dropping their auto insurance policies to save on their expenses. With some 20 percent of motorists on the road uninsured, the rising figures are adding to the worries of many government agencies and insurance analysts.
Some state report that one out of every five driver does not have updated insurance. With nearly all states requiring some sort of car insurance, Americans can see more car accidents involving uninsured motorists. Experts warn that getting into an accident with an uninsured driver can cost thousands more in out-of-pocket expenses.
A growing number of policyholders, however, are choosing to increase their deductibles to cut down on the cost of premiums. Analysts say that by increasing deductibles to $500 or even $1,000, drivers can save up to 25 percent from their premiums. Specialists warn though, that this option is favorable only for drivers who get involved in minor accidents. By choosing to pay for minor repairs from their own pockets, policyholders can scale back their premiums.
Americans can also slash their insurance expenses by shopping for new insurance providers. Several reputable websites offer insurance quotes and comparisons for consumers on the hunt for new insurers. Experts estimate that by doing some research before deciding on a provider, motorists can save anywhere from $138 to $540 per year. That range coincides with the 10 to 40 percent estimate given by some industry analysts.
To save more money, experts also recommend paying premiums fully. Paying for insurance only once per year can save up to $125 per year. Analysts say that when policyholders decide to pay their dues in installment, insurance companies slap on administrative fees to cover all the expenses.
Most specialists also agree that Americans can save more money by availing of multiple insurance from the same provider. Purchasing home, car, and health insurance from the same company can give many policyholders considerable leeway and discounts. Estimates range from 10 percent to as high as 30 percent.
Installing safety devices and anti-theft equipment can also convince insurers to slash substantial costs off premiums. A newer and safer car would generally be cheaper to insure than an old and less-reliable vehicle, experts say.
More mature drivers can also avail of lower premiums since companies often consider motorists over the age of 50 as more responsible.