While looking for ways to save money, many Americans may overlook their car insurance premiums.
That could be a costly mistake. Taking a few minutes to review and adjust your auto insurance policy could save you hundreds of dollars per year.
Saving on your car insurance is easier than you might imagine. Here are three ways to reduce your costs, as well as an estimate of potential savings based on the national median rate of about $1,400 per year reported by InsuranceRates.com. If you pay more than the median rate, you could save even more.
1) Take a hard look at your deductible. According to the Insurance Information Institute (III), raising your deductible from $250 to $1,000 could reduce your collision and comprehensive coverage costs by up to 40 percent. You’ll incur higher costs should you need to file a claim, but the amount you’ll save on your premiums may be well worth it.
Estimated Savings: $170 per year
2) Combine your auto insurance policy and either home or renters insurance policy with a single insurer. According to the III, converting to a multiline policy could save you as much as 15 percent on your auto premium. Plus, you’ll have one fewer bill to pay each month.
Estimated Savings: $210 per year
3) If you can afford to, pay your auto insurance premium in one lump sum. Many insurers charge a fee to break up your premium into monthly payments, and even a few dollars a month could amount to a hefty surcharge.
Estimated Savings: $60 per year
In addition, make sure you shop around and speak with agents from several different companies. Insurance providers often specialize in different types of drivers, and depending on your personal circumstances, it’s probably worth your while to compare quotes.
To learn more ways to save and to compare rates online, visit www.InsuranceRates.com.
5 Comments Received
March 5th, 2010 @1:57 PM
Thanks for the tips. As an under 25 driver I’m already being charged through the nose so it definitely can’t hurt to try these out.
March 9th, 2010 @11:50 PM
I really need to start shoppping for new car insurance, I think I’m paying too much (compared with what I’ve seen from my friends). I think taking number 3 on your list into consideration will probably help a lot–paying month to month is obviously not saving me any.
March 22nd, 2010 @6:51 PM
One great advice that should always be remembered when getting car insurance: Don’t ever get the initial quote: the initial quotes you’ll receive back for your auto are somewhat to be on the high end. Insurance car companies finance on the basis that until you’ve acquired some quotes you wouldn’t be aware what’s really a true quote. Don’t ever get the initial quote you can get, even though how cheap it may appear!
March 24th, 2010 @2:15 AM
Great Article! In fact I too don’t use to think before paying for the insurance but your tips are really very helpful and next time while considering on these tips, I will be able to save my valuable money. Thanks for the info.
May 7th, 2010 @7:35 PM
Car insurance money saving ideas come from lots of sources. I think you have hit on some key ideas here as well. One thing people forget about is their driving record as it is the single biggest thing you can do to keep your insurance rates lower. You might live longer too.
Leave A Reply