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.
March 17th, 2008 at 11:30 pm
March 18th, 2008 at 9:53 am
Another tip is to be careful when using comparison websites. Remember that they do not look at every company and some of the cheapest companies do not appear on any comparison websites. Also some of the cheapest policies have very basic coverage so make sure you know what you want to be covered for before you start to look.
You make a very good point, Rachel. It’s important to make sure that you’re comparing ‘apples to apples’ in terms of coverage. Also, you should be sure to find out what your state’s minimum requirements are. In addition, if you are still making payments on a car loan, most banks/finance companies require you to maintain comprehensive and collision coverage. - savvy
March 19th, 2008 at 8:51 pm
Great tips! You covered everything that I did so far to get th rate I have right now which is $58/month! I would also add that if you have children to put them on your policy early (you dont have to give them the keys) but this will give them a policy history once they get their own wheels. Also choose a car that doesnt have expensive parts or that are expensive to repair such as German cars.
Keep up the good work you have solid stuff here!
Thanks for the feedback. I love your blog.
March 24th, 2008 at 1:39 am