Car Insurance: what can you do better?

Lowering the Cost of Your Car Insurance

There are many ways that drivers may save on their automobile insurance – and it is pretty easy to do.  Here’s how to save on your premiums:

  1. Get rid of coverage on older cars. Once your vehicle is a decade old or so, consider scaling back to only “injury and property damage” coverage on insurance policies.  This can save you money and it’s just a phone call away.
  1. Look around before your purchase. According to industry statistics, only 40% of car owners in the U.S. looked around for auto insurance in 2015. The next time you need to renew your policy, get quotes from a few other companies.  Be sure you look at local companies, too, not just the ones online that say they have “low rates.”
  2. Pay annually, not monthly. Car insurance companies typically charge for each payment installment. You’ll save a few dollars if you shell out all the money at the start  of your policy year. Then, you won’t owe them any more money until your next policy year!
  3. Bundle policies. Do you own a home? Insuring your car and home with the same insurance company may bring rates down by more than ten percent a year. It’s as easy as that, according to the Sales Manager at Temecula Hyundai, a full-service car dealer in Temecula, CA. Your local insurance agent will be glad to speak to you about this option.
  1. Allow yourself to be monitored. The majority of insurance companies now offer people a discount if you install a device that plugs into your car’s OBDII port and monitors driving habits. Progressive, for example, provides discounts of up to thirty percent for people with good driving profiles.  If you think you are a good driver, you probably are so it may be worth a try.
  2. You do not always have to file a claim after a crash. If you’re at fault, filing a claim can raise your premium by about 35-40%. So if you’re involved in a small fender bender, carefully neglect filing so you don’t get a premium raise.
  1. Mileage discounts. Some companies will offer you a discount if you drive under a certain number of years that they consider “average”.  They think these drivers aren’t as risky than high mileage drivers.
  2. Got a teen?  Make sure the insurer knows if your child gets good grades.  Students with good grades pay as much as twenty percent less than their peers without good grades did on insurance. All you need is a progress report from the school that they attend or attended.
  1. Do you have a decent credit score? Your credit score might be factoring into your insurance rate.  A recent study found that there is around a thirty or forty percent difference in the cost of car insurance premiums for somebody with great credit and someone with bad credit history.
  2. Other discounts—some insurance companies offer various kinds of discounts if you’re a member of an organization, etc. Sometimes professional or alumni organizations work with insurance companies, and if you’re in one of those you could get a discount. Check with different insurance companies to see what they may offer!

On a related note you will keep more money in your pocket each year if you keep yourself away from moving violations and parking tickets. We hope that this article has provided you with some useful information on saving money on insurance and while owning a car!