Auto insurance is very important and can account for a sizable portion of your monthly budget. Depending on many factors such as how many vehicles you have, your driving record, and age, auto insurance can run into the thousands of dollars per year. Even though the cost of the policy is important, it is also important to make sure you’re adequately covered.
Shop Around
The insurance industry is very competitive, and there are seemingly countless companies to choose from. So, with so many options available, the best thing you can do is to shop around. You’ll be surprised how the exact same level of coverage can vary between companies.
With a lot of companies offering online services, it is easier than ever to get quotes, but don’t stop there. You’ve seen the commercials for companies that boast about the savings, but don’t ignore your local insurance companies. Usually a quick phone call is all it takes to obtain a quote from them.
Get Discounts
Do you have a clean driving record? You may qualify for a discount. Are you a member of a professional organization or auto club? You may qualify for a discount. There are many ways that you can obtain a discount on your policy, so be sure that when you’re shopping around, you mention anything that might qualify.
Also, don’t forget multiple policy discounts. If you own a home, it might be worthwhile to check with that insurance company to see what kind of discount you could receive by purchasing your auto insurance through them. In many cases, this could mean a reduction of up to 20% on either your homeowners or auto insurance premium.
Drive a Less Expensive Car or Drop Some Coverage
The type of car you drive plays a big role in determining how much your premium will be. More expensive vehicles will generally have a higher premium. In addition, insurance companies keep tabs on what vehicles are more likely to be stolen. If you drive a car that is a target for thieves, expect to pay more for coverage.
If you are insuring an older vehicle, it may be time to drop some of the coverage. For example, if you are driving an older car that is only worth a couple thousand dollars, it probably isn’t worth paying for comprehensive coverage. In many cases, after you factor in the premium and deductible after an accident, you have spent more than the car is worth. So, it might make sense to drop everything but liability coverage on an older vehicle.
Don’t Underinsure
If you are facing high premiums, don’t simply reduce coverage in order to save money. Remember, when you are driving, you are putting your life and the lives of others on the line. Reducing coverage will simply reduce the amount of liability and injury coverage. With the high cost of medical treatment, even a relatively minor injury to you or others could go beyond what a low coverage policy might cover.
You want to be sure that you are insured enough to protect yourself and your assets in the case of a lawsuit. While most states have minimum coverage requirements, they are usually far lower than what you should be considering if you want to protect yourself.
Buy Insurance from a Reputable Company
In the event of a claim, you want to be insured by a company that will pay out. If you try to save a few bucks by dealing with an insurance company that isn’t highly rated, you may find yourself having difficulty if you need file a claim. Many of these companies will also entice you with a low initial quote, but come renewal time, they will surprise you with a large increase.
