5 Tips to Save Money on Auto Insurance
Source: sxc.hu Photo: bruno-free
Saving money on auto insurance is easy but you must approach it the right way. Everyone needs auto insurance and it’s an expense we must face for a lifetime. I don’t know about you, but if there is an expense worth learning more about, that expense would have to be insurance. Below I’ve provided five useful tips to help you save money on auto insurance.
Tip 1: Don’t wait until the last minute
Many people choose to start shopping for auto insurance a day before their existing policy’s renewal date. During a comparison quote process we have found that on, many cases, if you shop over a week before your renewal date you will get rated lower compared to if you shop on or just before your renewal date.
Tip 2: Always comparison shop
With the high cost of living, we are in a way forced into shopping around for the best deals on most things we buy. This is how most of us maintain financial stability. You must go about shopping for your insurance the same way. Whether you decide to get a comparison quote online or call a local independent Agent, you’re on the right track. As an Independent Agent in Arizona, I’ve found that in most cases I see about a $500 difference between the lowest premium and the highest premium after doing a comparison quote for a client.
Tip 3: Low cost insurance and financial security
It’s no longer impossible to get low cost insurance WITH the financial security. Many are quick to insure themselves with the state minimum liability requirement. Instead of insuring yourself with a policy that may not be good enough, place focus on discounts instead. There are several discounts auto insurance shoppers can take advantage of including the paperless discount, multi-car and multi-policy discount, and the paid-in-full discount.
Tip 4: Choosing your deductible
The deductible is the amount you must pay first before any claims are paid out to you by the insurance company. The higher the deductible, the lower your premium will be. You don’t want to choose too high of a deductible. Some Agents believe your deductible should be close to your weekly income. You want to have the funds available in the event you need to make a claim. If you do decide on a high deductible you may want to consider putting away some of the money you saved on a monthly basis. This way if something happens down the road you have some of the deductible available to you.
Tip 5: It’s never a bad time to shop
Insurance companies will often go through rating changes. A company that may have rated you high in the past, now may have some of the lowest rates for your specific insurance need. Some people have been with their current insurance company for years without ever giving thought to the other options available to them. Eight out of ten times, these shoppers will see the highest savings after reviewing a comparison quote online.
I believe these are five tips every auto insurance shopper must consider when searching for auto insurance coverage. Auto insurance shoppers can learn more about discounts and compare insurance quotes online.
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great post cole.
There is another way to save money.
You can register with a cashback site such as topcashback.co.uk in the uk and they will give you a cashback amount if you buy through their link. I’m sure there is another site like this in the US
Also if you get a cashback credit card you can save even more money.
Steven Aitchison´s last blog ..If success was easy everyone would do it
Steven, It would be great if they had a site like that in the US, however there are strict laws that prohibit giving money back for purchasing insurance at a specific place here. They give a fine of $500 and call it rebating.
Yeah, sometimes we provide “thank you for your business” gift cards but we must keep the value under $10, otherwise we get slammed with the rebating fine.
When looking for a free online insurance quote try to give them as much information as you can so that you can test out their services and see if it is right for you. Plus always ask to see what kind of options the insurance company will give you for your deductible, this will save you some stress in the future.
There is also another way to save, if you are a save the planet type and drive round in a so called ‘green’ car their are ‘green’ insurance companies providing policies for such car owners, rewarding them for their efforts in saving the planet