Lower Carrier Risk = Lower Premiums

The more you take risk away from the insurance company by doing common sense stuff, the more you will save:

  • Drop comprehensive and collision on any car worth less than around $3000 and stick with liability only. In many states the insurer won't give you diminished value or pay much for an older car esp. with high miles. So you're paying for high end coverage you just will not collect on, even if your car gets totalled or stolen.
  • Increase deductibles
  • Remove the car rental rider. Compact cars only cost around $25 a day to rent. Even if you rent a car on vacation, your insurance will cover you while driving that car. Don’t pay for double coverage.
  • Shop, shop shop! Even before buy another car, check the insurance rates. Companies will increase liability premiums if the cost of damages on your type of car is higher than average. Saturn for instance is a low insurance car because it has dent-resistant doors. Carriers also price vehicles based on how much they could be damaged in an accident, how often they are taken, and how badly medical injuries are to driver/passengers. Cheap flimsy cars could be a lot more expensive than you think. Check top 20 list of safe and lower priced cars.
  • Do not put a lot of money into your car. If your car is destroyed or stolen, the insurance carrier may determine a fair market or actual cash value which is much lower than you think the car's worth. Even if you paid for $5,000 for upgrades (rims, spoilers, stereos, exhaust, etc.) they may not add much to the value to your vehicle.
  • Check out multi policy discounts. If you have several of your insurance plans in one place, the more you save.
  • Find out if your insurance company offers low-mileage discounts and what those are. Keep your driving down and consolidate trips!
  • Can you take a safety-driving course? Some companies offer a discount for this.
  • Don't pay monthly because your carrier will add a finance charge and possibly interest for monthly billing. Pay annually or every six months at most. If you can't pay semi annually, go on electronic auto pay.
  • Check out insurance companies rates with the state, which are public record, along with complaints or fines.
  • Your State may also have a low cost auto insurance program, which is usually not low cost. In California it's called the Low Cost Automobile Insurance Program (CLCA) and it's about $264 per car annually in San Diego county (Single males 19-24 pay $330).
  • Some states allow use of your credit to determine your car insurance rate along with claim and ticket info. Even if it's illegal for them check your credit in the middle of the policy, they only have to wait until you renew or add vehicles. If you are improving your good credit, this request that they re-check your score once per year.

 

 


Auto Insurance Tip

Pay your premiums annually, you will not get charged a fiance fee.More car insurance tips...