Monday, 17 Mar 2008
These five simple steps can potentially save you hundreds of dollars a year on car insurance.
- Shop around – Don’t assume that the company you’ve always used will have the lowest rates. Non-traditional companies with a heavy online presence (think Geico or Progressive) often have much lower premiums.
- Take a defensive driving course – Most companies offer a discount for drivers who have taken such a course. These courses can be found online for as little as $40 and your discount will typically last for three years.
- Increase your deductible – If you already have an established e-fund, there’s no reason to keep your deductible at $250 or $500. If you feel that you could absorb a $1000 deductible, then the cost savings may be worth it for you.
- Consider liability only – If you have an older vehicle that may not be worth much, it may be worthwhile to consider dropping your comprehensive and collision coverage. Instead, use that money to build up a “car fund” for when you do replace the vehicle.
- Look for multiple policy discounts – In addition to a multi-vehicle discount, many companies offer multiple-policy discounts. This means you can receive a discount for having your homeowners or renters insurance with the same company that holds your auto insurance.
So, by taking just a little time to evaluate your insurance needs, you can reduce the amount you pay for car insurance.