Tips for Saving Money on Auto Insurance
Do the math. If you have collision coverage on an old,
high-mileage vehicle that is paid off, check the car’s value. It may not take
much damage for it to be declared a total loss, and you may be surprised to find
out it’s not worth paying the extra for full coverage. If you owe more on your
vehicle than it’s worth, some insurance carriers offer coverage that pays off
your vehicle if it is totalled in an accident (restrictions apply). You may already have coverage through your finance agreement, called "Gap" insurance. Check your finance agreement or contact the dealership for more information.
Consider a
higher deductible, which will lower your premium. Your deductible is the amount
you are responsible for before your insurance company will pay a claim. Think
about how much you can afford to pay if your car is damaged.
Check your credit
report at least once per year. Ask for a free credit report at
annualcreditreport.com. Most insurance companies use your credit history as part
of their rating process. It is a “soft hit” inquiry, which does not affect your
credit score.
Ask about discounts. Here are some common discounts:
• Early
shopper – Many insurance companies like people who plan ahead.
• Transfer
Discount – Companies want your business. Some give better rates if you have a
long history of prior insurance coverage with a major carrier.
• Homeownership
discount -- Even if you don’t bundle, most companies offer a discount on auto
insurance if you own your home (even rent-to-own).
• Driving fewer miles – Some
companies offer a lower rate if you drive less miles per year.
• Pay in full
discount – Paying in full or setting up automatic payments will save you up to
15% with some carriers. • Sign up and download the carrier's driving app to your
phone, if available. You can earn discounts for being a safe driver.
• Many insurance companies offer discounts for certain occupations, including active
and retired (military, educators, medical professionals, engineers, and more).
•
Prior Insurance discount – Some companies will give you a better rate, depending
on the number of continous months of auto insurance coverage you’ve had without
a lapse (gap in coverage).
• Claim-free discount – rates are higher if you’ve
had collision claims, and in some cases, comprehensive claims that paid out over
$1,000. Some companies give a deeper discount for not having a claim in the past
5 years (most only go back 3 years).
• Safe-driver discount – rates are higher
if you have had tickets and at-fault accidents.
Be proactive. If you’re shopping
for a new vehicle, ask your insurance agent to give you a ballpark as to how
much it’s going to affect your insurance rate BEFORE you purchase the vehicle.
There are certain makes and models that are rated much higher than others. Before you buy your 16-year old that Camry, check to see how much adding a
16-year-old will impact your insurance rate, as there will be an increase in
rate for the young driver as well as for the vehicle. Recommendation: Consider
buying an older vehicle that does not require full coverage and upgrade once
your young driver has driven responsibly for 12 months.
Don’t let your insurance
cancel, even if you must temporarily reduce coverage limits, remove a vehicle,
or increase deductibles to keep the policy in force. Some carriers will not
insure you, even if you have had one day of lapse in coverage. Carriers that do
offer coverage may charge you more, depending on the length of time you were not
insured.
Schedule a renewal review with your insurance agent. If you get your
auto insurance renewal, and the premium has gone up significantly (10% or more),
contact your insurance agent and schedule a day and time with them to review
your policy. It’s possible he/she can find a way to help lower your premium.
Comments
Post a Comment