Wouldn’t it be nice to get cheap auto insurance so you aren’t paying as much, but still keep the kind of coverage that you need to protect you, your car and your passengers? Today, cutting costs where ever possible is more important than ever. Did you know there are actually several things you can do to make getting cheap auto insurance easier? Use these tips to lower the costs associated with keeping your car insured.
1. Increase your deductible. You’re more than likely a pretty safe driver if you haven’t been involved in an auto accident in the last three years. The deductible is how much you’ll be required to pay before the insurance company will step in and pay for damages and other costs associated with an accident. By increasing your deductible you’ll end up having to fork over more cash out of your pocket in the event of an accident, but you will save as much as 30 to 50% on your monthly premium. So if you’re a careful driver and rarely are involved in accidents, you can save a great deal on your auto insurance over time.
2. Eliminate unnecessary coverage. You should look at the value of your vehicle. Many people don’t realize that they are paying more for their insurance than their car is worth. While it is good to have a lot of coverage, if you are paying more for your coverage than your car is worth, you need to do away with some of the “extra” coverage and have it be more in line with the value of the vehicle. This can save you as much as 20%!
3. Report low mileage. If you don’t put many miles on your vehicle per year, you should report it to your insurance company. In many cases, if you drive less than 12,000 per year you will receive a low mileage discount. This may not seem like much, but the discount can add up and save you a few dollars per year, and every dollar really does count.
4. Check your address. A lot of consumers don’t realize it, but car insurance rates vary depending on where you live. Make sure that your insurance company has your address correct on file. If the zip code is wrong or the name of the street is incorrect, you could be paying more than you have to.
5. Ask for discounts. Many car insurance companies are willing to give discounts for a variety of things such as a clean driving record, anti-lock brakes, alarms, etc. You should ask your insurance company about the discounts that they offer to accumulate savings that will allow you to save in a big way when all is said and done.
Veronica Davis is a freelance writer and WAHM. She often writes about personal finance and getting cheap auto insurance is just one of the many topics she helps people with.