Lowering your insurance premiums while maintaining a good amount of coverage is easier than you may think. If you’re like most people, you probably rarely think twice about your insurance policy. It’s sort of a need it, get it, forget it purchase and that`s when you end up spending more money than you have to.
Unless you’re well versed in insurance and most people aren’t, you most likely sat across from your agent’s desk and nodded while they added all sorts of extra coverage to your premium. All those little extras sounded good at the time and they might have even been relevant, but saving money means reassessing that policy.
A low deductible was a good idea when your car was new, but once you make that last monthly payment chances are you can afford to raise those deductibles. For instance, if you were making a $300 car payment each month and had a $200 deductible, you can afford to increase the deductible by $300 or more once the car is paid off. A $500 deductible is higher, but you save money on the costs associated with collision and comprehensive coverage.
Take the time to check for any insurance coverage you don’t need. Older cars don’t need collision and comprehensive if they have lost most of their value. In fact, you could be throwing money away with this type of coverage on an older car because any claim you make most likely will never exceed the cost of the deductible.
Be mindful of the kind of car you drive. Expensive, high profile cars are at greater risk of being stolen and they’ll come with higher premiums.
Find out if you qualify for discounts. Some insurance companies offer discounts to students, safe drivers, certain organizational members and even those that carpool. Having safe equipment in your car may even help, such as having air bags, anti-lock brakes, an anti-theft device and more. The types of discounts offered will vary by insurance company but it doesn’t hurt to ask.
Take advantage of discounts by keeping your policies with one insurance company. You can lower your auto insurance by buying the insurance company’s homeowners or rental insurance. You can even do this by insuring other drivers in your family with the same agent, or buying life insurance where you hold your auto policy.
Never buy duplicate insurance. It may be a good idea to have more than one life insurance policy, but do you really need excessive personal injury protection if you already have good health and disability insurance? Make sure your credit card doesn`t already offer roadside assistance. Many of them do, which makes paying for this service through your auto insurance obsolete.
Be upfront with your insurance agent about your needs. Oftentimes, they will find corners to cut for you to get you a better deal. At the end of the day, your money saving money is your responsibility while it`s the agent`s job to sell you more coverage. Take charge of your policies by keeping track of what you buy, the coverage for which you are paying and when you need to reassess your insurance.