7 Ways to Save on Auto Insurance!
1.) Take an annual policy rather than a 6 month policy. This locks you into a rate for one year, which means the company cannot increase your premium until your full year policy has ran its course verses your rates changing every 6 months. Some companies also shave a few bucks off the total premium if a one year policy is selected because they benefit for being able to keep the customer for a full year. Also, if you file a claim during the policy term the company will not charge the additional premium for it until renewal.
2.) Stay away from sports cars and high performance vehicles. Sports cars and high performance vehicles tend to carry higher rating symbols which will result in a higher rate of insurance. Insurance companies view these as a higher liability risk.
3.) Carry higher liability limits. You get more “bang for your buck”. It only changes your premium a few dollars when you up your liability limits and you are getting twice or sometimes more than twice the coverage for about the same price.
4.) Bundle your home with your auto policy. Almost every insurance company will give a discount if you write your home with them as well. Often times you can save as much as 20% or 30% of your total policy premium.
5.) Carry coverage on at least two cars on your auto policy. This will give you the multi-car discount that most companies have. It can save you up to 10% off your total policy premium.
6.) Plan ahead before adding new or inexperienced drivers to your policy. Don’t rush out and buy your teenage driver an expensive high performance vehicle to drive only to find out later that you can’t afford the insurance. The most economical way to insure new drivers is on an older model vehicle with liability coverage only. Contact your insurance agent beforehand and have them give you an estimate on how much to expect your premium to increase when you make these changes. That way there will be no surprises when you get your first bill.
7.) Be honest with your company and agents. Telling your agent or company about any prior losses and or accidents beforehand will ensure that you are placed with the right company at the right price. Some standard companies will charge higher rates for drivers with points or accidents, whereas other non-standard companies may give a cheaper rate for those individuals. Because some standard companies will not permit drivers with numerous violations on their driving record to purchase physical damage coverage, informing your agent of such things beforehand will eliminate a possible increase in premium or it can eliminate the chance that this coverage will be deleted from your policy once it has been issued.