Saving money on your auto insurance does not have to be hard and can be brought about in many ways. To save though, you will have to invest some time shopping around. Let’s look at various ways to save!
- DISCOUNTS: Don’t be afraid to tell your agent every affiliation you have or what you do as you never know when it might lead to a discount. When I was younger, I was still being charged the higher rates because of my age. I told my agent that I thought it was nuts that I could handle all of the finances of a company, but could not get a good insurance rate. Obviously my age did not stop me from getting a great job – too bad it’s holding me back on something like this. With that, he said….”you know, there is a young professionals discount I can get for you”. DUH! Of course you should get it! LOL Sometimes teachers, military, etc can find extra perks due to their chosen career path as well. It never hurts to ask. Next time you talk to Mr or Mrs Agent, make sure to keep them on the phone just a bit longer discussing what kinds of discounts are out there!
- RISK: I used to have a $250 deductible on my auto. I did not want to be paying out big if something happened, but instead I was paying out big year after year for that low deductible. I finally switched to a $500 (meet in the middle path) and watched my rate drop as a result! The more risk you assume, the more you save on your premiums.
- DRIVING HISTORY: No secret here that getting a few tickets or being in an accident will cost you more than that ticket shows. Insurance costs rise when your risk factors rise. Give the impression that you are not a safe driver and get a bigger bill.
- PAYMENT SCHEDULE: Did you know that you are charged more to pay monthly? By paying every 6 months or even yearly, you are going to save BIG. I am talking possibly hundreds. Find a way to pay your next bill in full and then each month instead of sending in the check, set it aside for when your next renewal comes about!
- CREDIT SCORE: Did you know that your credit score could affect your premiums? Before making our latest switch in providers, I called my agent and let him know that our costs went up but we did not know why. Our cars were getting older and we had nothing that would set off flags for an increase. He told me that it was probably our credit scores dropped and with that, he dropped it. I looked and our scores hadn’t moved a bit so we decided it was time for a change. Not only did we save just over $100 / 6 months, we also got an agent that is ready to work for us (at least for the time being).
- TO COMBINE OR NOT COMBINE? You may hear people tell you to combine that house and auto for the best rates by getting multi policy discounts. For us, this has not been true for years. We are with Progressive Drive and get the best rates possible. We save so much on auto with them that even having our house insurance go up a bit it’s still a substantial savings overall. My advice? Always have your agent shop it BOTH ways to see what’s the best deal for you.
- SAFETY FEATURES: Did you know that having certain safety features can also help reduce your costs? We had a Dodge Grand Caravan with great safety features. These safety features not only gave us more peace of mind with our son, but also handed over savings. Does your car have a front passenger air bag? If so, can you disable if a child is there? Does your vehicle has a rear camera or back up sensor? Does your vehicle offer additional airbags? How did it do in crash test ratings? All of these things will play a part in what you pay.
Shopping for insurance offers many ways to save. Next time you talk to your agent (maybe you need to now), make sure to discuss these things and see what kinds of responses you get. Does your agent sound informed and able to relay the answers you are comfortable with or do you get the feeling that a change is in order?
Remember, you are not married to that insurance! You can change at any time.
