All posts tagged how to reduce auto insurance

There is a good chance you may be wasting money on car insurance. This is not because you are a bad driver or a high risk. Sometimes people tend to overlook the best way to save money. There are some reasons why you may be paying more for car insurance.

Failing To Comparison Shop

You could be the kind of driver that sticks with one insurance company for years. This is fine in some cases. If you have a great history with an insurance company, that is probably the best bet. However, it doesn’t hurt to shop around. You may save a lot of money by going to another provider. There may also be some insights gained. An outside agent may find some holes in your coverage that were overlooked. It is a good idea to take a yearly look around to see what is available. This is the best time to do this because your policy is up for renewal around this time. Drivers can search for better rates anytime of the year.

Not Combining Policies

Most insurance companies provide deep discounts. This is done if you have car insurance and home insurance with the same provider. If you can, combine multiple policies with same provider. A lot of insurance advertise multi-policy discounts. These discounts can save you 10 percent or more off of your premium. You can save more when you package everything together.

Keeping Deductibles Too Low

Your premium may be too high if your deductibles are small. Your premium can be lowered by about 20 percent if you increase your deductible from $200 to $500. Make sure you have enough money to pay your deductible if you raise it. This helps if you should ever need to make a claim. You should keep the money in an emergency savings account. If you do not file a claim, then you can keep the savings. You will not waste money on a higher premium either way.

Not Asking For Discounts

Discounts for car insurance are given to teen drivers with good grades. There are members of some organizations that receive discounts as well. Those organizations include AARP or a college alumni association. An organization like AAA does not have a guarantee that membership will save you money on car insurance. Many members do find savings, discounts on shopping, emergency road assistance, and other benefits. You can talk to your insurance agent to see if you qualify for special car insurance discounts.

Paying Unnecessary Fees

Some auto insurance companies will charge you a service fee. They charge this fee every time you make a monthly payment. This amount is generally between $1 and $7 every month. These figures add up. Look for insurance companies that do not charge extra for monthly payments to lower your auto insurance rates. You can also try to save up and pay the whole premium when it is time to pay it. This eliminates monthly charges as well.

There are a lot of reasons why you pay may more for car insurance. Most drivers wind up paying more than they should when they purchase car insurance. Sometimes it can seem overwhelming and complicated. You can take your time and do a bit of research to review insurance quotes, drivers will be able to find the right policies at a reasonable price.