14 May 2009

Top 10 tips for saving money on car insurance

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1 Ask about discounts. Ask your agent about multiple-car rates, good student, house and car rates, and if your employer offers group rates.According to Blau, multiple-car discounts saves about 15 percent, auto and home advantage program save up to 25 percent, and good student can save between 15 to 20 percent.
2 Obey the speed limit. The limits are set to create a safe pace of travel, so follow them. Abiding by them reduces your risk of being involved in an accident.
3 Wear your seatbelt. It’s the golden rule of the roads.
4 Drive less. Some companies offer “low-mileage” discounts to customers who do not commute a long distance to work or those who carpool.
5 Consider paying for your coverage every six months. Many companies offer a reduced price if drivers pay bi-annually instead of monthly. At American Family, policy holders can save about $20 a year.
6 Encourage young drivers to take drivers education. While you many not see any immediate savings in your bill, drivers-ed graduates are generally less at risk than their peers for accidents and speeding tickets. American Family also offers a Teen Safe Driver Program for families with their teens on their policy that offers a free camera to place in the car to help teenagers make good choices when driving.
7 Look at your deductible. If the value of the car is close to the cost of the deductible, look at dropping the deductible and put the savings into the bank for a rainy day. If your accident record is clean, consider raising your deductible to lower your monthly bill.
8 Switch to liability. Blau said everyone has their own theory as to when to switch, but advises his customers about the option when their vehicle only becomes worth about $2,000.
9 Shop around. When looking for car insurance, not only check out competitors’ rates; but check out the benefits of each company such as discounts on other products or services, customer service, locality, convenience. Blau advices consumers to go with a solid company as many companies try to offer cheap rates. Blau said often times these companies offer introductory rates, but after six months will hike up the rates. He said you may even end up paying more in the long run than they would at a solid, reputable company
10 Buy a low-profile car. A policy on a 4-door sedan is typically cheaper than a sports car since statistically, sedans aren’t involved in as many as accidents.

3 comments

Nice informative post! Whatever your situation, it is always important to stay on top of car insurance rates that different companies are offering. If you previously have a policy, compare quotes every six months or so to make sure you are getting the best rates out their for your situation.

Thanks...
Florida Health Plans

Thanks for your information coz i have car insurance... i could use your suggestion next time...
please come and visit my bllog :
http://www.dunianak.com

Thanks for sharing all these money saving tips. I am also planning to buy a car insurance policy and now will make use of all the tips shared to save money. I am hoping that these tips will do help me out and I will be able to find a cheaper policy.
corporate insurance


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