You’ve seen all the TV commercials about saving money on your car insurance. What are some ways you can actually save some money on your next insurance bill?
- If you pay your premium in full, most companies will offer a good size discount, whether it is a 6-month or 12-month term. You may be given the option to pay in monthly installments, but paying the full amount will decrease your premium.
- If possible, bundle your policies with one company. Do you have an auto policy with one company and a homeowners or renters insurance policy with another? Bundling your policies not only makes things easier by having your insurance with one company, but it may also lead to a good discount. This isn’t always the case though. Your independent agent may find a great deal on each policy with different carriers.
- You may want to increase your deductible – the amount you’d pay out-of-pocket for damages to your vehicle before the insurance would respond. If you’re able to pay a higher deductible in the event of a claim, your premium will probably decrease by choosing a higher deductible.
- If you have a teen driver, the risk is higher and so is the premium. Teens are less experienced drivers and more prone to accidents. As a group, they’re also more likely to take risks. Before your teen gets a driver’s license, shop around for insurance. Rates for this age driver vary from company to company. Educating a teen driver is extremely important, too. Parents’ good role modeling while driving makes a big difference in how your new driver reacts to other drivers’ behavior on the road. Take time to teach as you drive so that your teenager learns how to handle difficult road conditions and to recognize both safe and unsafe driving practices.
- The number of miles you drive can impact your insurance premium. Think about it. The more you drive the higher risk you have of being involved in a collision accident. You might consider taking public transportation, ride sharing, carpooling, or calling an Uber and leaving your car in the garage. If you do, contact your agent to report your lower mileage as it might help lower your insurance premium. You’ll also be filling up the gas tank less.
- Check with your local independent insurance agent for other ways to lower your premium. Many companies offer these discounts:
- going paperless with your billing
- claims-free
- multi-policy and/or multi-vehicle
- smart car technology
- auto EFT payments
- continuous insurance
- good student
- home ownership
- paid-in-full
