Everyone loves to save money. Some clip coupons, while others cut back on morning lattes and carpool to work. These are all good ideas, but there’s another great way to save money that very few people consider—your auto insurance. You can often save a few hundred dollars on auto insurance, especially if it’s been a while since you’ve gotten a quote.
As an independent insurance agent, I work with companies that provide a good combination of low rates, discounts and excellent claims services—after all, it’s my job to save customers money. Switching insurance providers isn’t the only way to save money, however, which is why I always recommend reviewing your policy at least once a year.
Here’s a top-nine list (sorry, Letterman) on ways you can cut costs on your auto insurance:
1) Shop around: Gather quotes from multiple insurance carriers. Independent agents can do this for you, or there’s a lot of great information on the Internet. Make sure you aren’t just looking at the price and potential discounts, but also examine a company and agent’s reputation, customer service and coverage.
2) New (and used) car shopping: Some new and used cars are more expensive to insure than others. Check with your insurance agent before you buy a car and factor insurance rates into your buying decision.
3) Livin’ in the city has a cost: Rural communities often have lower rates than cities because accidents are more likely to occur in highly populated areas. Remember, though, city dwellers can get discounts for living in a home or apartment that has a gated entry and secure parking.
4) Auto safety discounts: Certain safety features on your car can translate into insurance discounts. Airbags, anti-lock brakes and car alarms are just a few items that can net a nice savings.
5) Low mileage savings: Drivers who annually put fewer miles on their car can often receive lower rates. Be prepared to provide odometer readings or service records to verify your annual mileage.
6) Bundling policies: Many insurance companies offer savings if you buy two or more types of coverage from them. For example, Mercury Insurance offers up to a 15 percent discount when you bundle your home and auto insurance.
7) Other auto insurance reductions: Many auto insurers also offer discounts for good drivers, multiple cars on one policy and good student discounts. Check to see what discounts your insurer offers.
8) Go Paperless: Many companies provide savings when you choose to receive your bills electronically. You can also often save money on installment fees when you sign up for auto pay.
9) Raise your deductible: The higher your deductible, the lower your premium. Just make sure you can afford to pay a higher deductible if you have to make a claim.
There are many ways to lower your auto insurance rates. You just have to take the time and do some research to find those discounts that will apply to you.
Dave Fawcett
