If your insurance company has just raised your rates, or if you are shopping for a new policy, here are some tips to give you an affordable car insurance premium!
Consider raising your deductible. The difference in price between a $ 250 deductible, a $ 500 deductible, and a $ 1,000 deductible can be hundreds of dollars a year. If you are good at putting a little money aside for a rainy day, then bank the extra savings! If you do have a car accident, you can use the savings to pay off the extra money, but if you do not have an accident, then you have increased your savings! Hopefully, you will drive without an incident, and then you can use the extra savings to buy something you want or save for other things.
Shop around. I, personally, have saved over $ 800 a year by checking prices between highly rated insurance company. I found that one major company which is based in the city I live in was willing to offer me a much cheaper premium than the other national insurance company. Make sure you compare the same policy with the same features, and that is exactly what I did. I can not tell you which company will be the cheapest for you, but I can tell you that a little comparison shopping will either ensure you that your company is cheapest, or it will save you lots of money!
Remove extras that you do not need. Now I would tell you to keep car rental insurance, because if you do have an accident and need transportation while your car is getting fixed, that rental insurance can save you hundreds, if not thousands, of dollars. However, you may not need roadside assistance if you already have it through a credit card or other service. I found that I had roadside assistance as the benefit on my health insurance association so I did not need to have the same coverage twice!
Watch your credit. This may sound insane, but more and more car insurance companies are basing premiums on credit! They have found that people with decent credit tend to have better driving records. Of course, if you do have a credit deficit, look for a company that gives that factor less weight.
Look for discounts. You may get a discount on your car insurance for something you already do, or for something you can do without much trouble. Driver safety courses can earn a 10 to 20 percent discount, and you can take some from your own home with a video or PC! Anti-theft devices, car safety features, or even parking a car in the garage can also earn discounts. Make sure you let an insurance agent know that you are looking for discounts, and then he or she should be able to help you.
Another discount some people overlook is the one many large companies give for having multiple policies. If you ensure your home and car, or more than one car, with the same drivers, you may be rewarded for loyalty! Some discount car insurance companies, however, do not offer home insurance, and the premiums may still be cheaper. Again, this is where we come back to the importance of shopping around.
Source by Marilyn Katz