11 Money Saving Tips
How to Get the Most for Your money: 11 Ways to Save Money on Your Car Insurance
homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you're paying too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company.
So you're shopping around for auto insurance. What do you need to know? Well, there are lots of ways – at least 11 – that you can save money. Many of these money-saving ideas may apply to you.
- One Insurer, Multiple Policies – Do you have a
These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.
* Tip. Talk to your agent about multi-policy discounts.
Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies.
These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?
The usual reason is that they don't know any better. No one told them which insurance company in the group had the best prices. And, odds are, no one even told them there was a group of insurance companies. If you have a spotless driving record, there's no reason you shouldn't be paying the lowest price a group of insurance companies has to offer.
* Tip. Make sure you're getting the best discount for your driving record. Talk to your agent. And remember, be a safe driver. It will save you money.
* Tip. Some drivers should consider mass transit. Yes, there's a price there, too. But you will reap the savings of gas and lower insurance costs.
* Tip. If you drive less than the average, you could be eligible for low-mileage discounts, which some insurers offer.
* Note. To get detailed information on your vehicle(s) – or a vehicle you're thinking of buying – write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the “Highway Loss Data Chart."
* Tip. If it's been years since you've had an accident, you may be better off raising your deductible and paying less each year for insurance.
* Tip. As a general rule, any car worth less than $1,000 shouldn't have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.
* Tip. Make sure you are taking advantage of all the discounts available to you!
* Fact. Rates can vary greatly from state to state. For example, someone living in New Jersey, Massachusetts or Hawaii pays several times more, on average, than someone in North Dakota, South Dakota or Idaho.
* Fact. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor. Many insurers do not use credit as a factor.
* Tip. Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.