This article was last updated on July 12
Paying that auto insurance bill can be painful especially if you have never had to file a claim. Mistakenly, this prompts many consumers pick the cheapest insurance by dropping their coverage to levels that will leave them seriously exposed if they have an accident or suffer the theft of their car. However, you can actually cut down your premiums drastically without sacrificing coverage at all. Here’s how:
1. Get Safe Driver credits. Your car insurance company charges you what they do based on the risk that you pose as a driver. If you want to pay less for your auto insurance, be a safer driver and prove it! First, remember that having a claims-free and violation-free record helps reduce your insurance premiums tremendously. Want to save even more? Take a safe driving course offered in your area and send the completion certificate to your insurance agent. You can usually save an additional 10-15% with a safe driver credit. (Tip: Check with your insurance company first to find out which safe driving courses are approved before enrolling.)
2. Package your home and auto and get a multi-policy discount. This is the biggest way to save money on both your homeowners insurance and auto premiums, hands down. Most major insurance providers will offer discounts off up to 20% on your home and auto insurance policy if you insure both with them.
3. Ask for discounts, and you shall receive. These days insurance companies are competing for your business. In order to offer you the most competitive rates they will qualify you for every discount they can. To quote Flo from the Progressive ads, “Does your home have deadbolts? Discount. Do you have smoke detectors in your home? Discount. Are your home residents smoke-free? DISCOUNT!”
4. Set your deductibles REALISTICALLY. It is really important to remember that what you pay for insurance is more than just your monthly and annual premiums. In the event of a claim, you are going to pay your deductible as well. If you set your deductible really high in order to pay lower premiums, you could just find yourself in a tight financial bind in the event of a claim. Suddenly, you’ll be wishing you were paying that extra $10/month for the lower deductible. Talk to your agent and run the numbers to see what your deductible options are and then choose one that makes sense for your financial situation.