Many people have a love-hate relationship with car insurance; you hate to receive a bill for something you hardly use, but you love it after an unfortunate accident (if you can afford the deductible). Listed below are tried and true steps that anyone can take to reduce their car insurance premiums.
Multiple Line Discount – one can take advantage of deep discounts by insuring all cars, boats, homes, and apartments with one insurance company.
Drive Less – If you were laid off or work from home, tell you agent. The distance that you have to drive varies by agency, but with State Farm you will receive a discount if you drive less than 100 miles per week.
Safe Driving Discount – You might qualify for a rate reduction if you have been accident-free for several years.
Increase your deductible – A deductible increased from $250 to $500 can save a family hundreds of dollars a year. However, if you increase your deductible, make sure you have the extra $250 if you have to file a claim.
Shop around — when your premium goes up, let your agent know you are looking; chances are they will find some other discounts.
Update agent if you are a parent under the age of 25 – You might receive the same rate reduction given at the age of 25. However, you will not receive another deduction once you turn 25.
Full coverage or liability – You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.
Talk to your agent before buying a new car – The shiny red sports car and the gadget filled luxury car might look good on the dealership floor, but the premiums might cost an arm and a leg. Check prices with your insurance agent to help you make the best decision.
Don’t buy short-term policies – There might be a penalty so buy long-term.
Don’t let your insurance lapse – A lapsed insurance policy indicates irresponsibility and high-risk. Avoid this at all cost. When you are ready to renew you will notice that your cost will have jumped tremendously.
Don’t insure vehicles you don’t drive – Take the old Chevy that you have been working on for years off your policy. However, some states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as inoperable” to avoid any complications or penalties.
Refresh your driving skills – confirm that the money you save when your premium is lowered outweighs the cost of the training courses.
Avoid accidents and tickets – Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 3-5 years.
Don’t let your teenager drive your car – Teenagers are viewed as inexperienced drivers and cost a small fortune to insure. Instead of letting them drive your car, purchase a reliable used car and only get liability.
Keep your credit score high. Some insurance companies will charge people with low credit scores a higher premium because they are expected to file more insurance claims.
Pay semi-annually – This is my favorite!! A surcharge fee is generally applied to customers who pay monthly. This fee is easily avoided by paying semi-annually. Begin to save up enough money to make the 1st semi-annual payment. After you make that payment, automatically transfer the monthly insurance payment into a high-yield savings account to earn interest. When you receive your semi-annual bill, pull money from your high-yield savings account to cover your premium cost. Any money earned from interest is profit.
Happy Savings!!
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