In today’s tougher economy, everyone is looking to save money on car insurance. Here are ten tips to help save money in premiums, according to the Insurance Information Institute.
- Request a higher deductible. It could significantly lower the cost of collision and comprehensive coverage.
- If your car is older, drop the collision and/or comprehensive coverage. Any claim you make probably won’t exceed the cost of the insurance and deductible amount. “Before you buy a car, look into the cost to insure it,” advises Jeanne M. Salvatore, spokesperson for the III. “Even within the same categories of cars, prices can vary.”
- Like a hot-looking car? It costs more to insure a car that’s more expensive to repair, or more likely to be stolen. But don’t think it’s only “hot cars” that get stolen. According to an October 2010 report by the National Insurance Crime Bureau, the most stolen cars in the U.S. in 2009 were the 1994 Honda Accord, the 1995 Honda Civic, and the 1991 Toyota Camry.
- Your options are to either carpool or drive less often. Many insurance companies offer low-mileage discounts for policyholders who carpool to work or drive a lower-than-average amount of miles per year.
- Many insurance policies offer a discounts for cars with air bags, automatic seat belts, anti-lock brakes, and approved alarm systems.
- If you have a teenager insure them on your policy rather than on a separate one.
- Young drivers who maintain good grades and pass approved driver education programs typically qualify for reduced rates. Also, there may be a discount if your child attends college more than 100 miles away and doesn’t have a car there.
- Insure all vehicles on a single policy. Car insurance may go down if you have homeowners’ or life insurance from the same company.
- You could pay less if you’re 50 or older, retired, with no accidents or moving violations in the last three years.
- Also, keep in mind that a car tow could increase your auto insurance premium and affect your eligibility for coverage. It might be a good idea to check out a separate roadside assistance plan.
