Monday, 17 Mar 2008

Five Ways to Save on Car Insurance


Creative Commons License photo credit: mmechtley

 

These five simple steps can potentially save you hundreds of dollars a year on car insurance.

 

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.


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