Thanks to the internet, people now have the advantage of shopping around for the best car insurance policy, and have a better understanding of what type of coverage they need and how much it should cost. This has given insured people the necessary tools to save a significant amount of money on their auto insurance cost. Keep reading to learn about 4 ways you can save money on your car insurance:
1. Combine Policies
One way to immediately save 10-15 percent on your car insurance is to purchase both your auto and homeowners insurance from the same company. This benefits you and the insurance company, making it a win-win situation. The insurance company benefits from the reduced overhead cost of maintaining one customer, but receiving payments on two insurance policies. You benefit from only having to keep track of one insurance company, and sometimes only one insurance premium payment a month. You also benefit from the cost savings.
2. Reduce Coverage Amounts
One of the biggest misconceptions about car insurance is that you need as much coverage as possible. But this isn't true. If you have an older car, don't buy an insurance policy with coverage amounts higher than the value of the vehicle. In fact, if your vehicle is worth less than $2,000 then you don't even need collision coverage because you can probably handle that expense on your own. Reducing your collision coverage amount, or totally dropping it from your insurance policy, will greatly reduce the cost of your insurance.
3. Safety Feature Discounts
Most drivers know that they can save some money on their car insurance if they have an alarm in their vehicle. But did you know that people who live in Florida, New Jersey, and New York can also reduce their insurance costs if they have anti-lock brakes? Some states also discount insurance costs if the vehicle has automatic seat belts and airbags. Each state in the U.S. has their own insurance regulations, laws, and discounts. Call your insurance agency to see if you qualify for any safety feature discounts.
4. Increase The Deductible
Other than the fact that it's mandatory in most states to have some type of car insurance, most people purchase insurance to cover the high costs associated with being in an accident. But, if you can afford to pay a little more money than your current deductible amount if you get into an accident, your monthly insurance bill will be less money. Your costs are reduced when you increase your deductible because you are assuming more of the risk, and that is less money that the insurance company has to pay out if you do submit a claim.
These are only 4 ways you can save money on your car insurance. There are more discounts you may qualify for to save even more money, like low mileage credit, good student discounts, and safe driver credit. Call an insurance agency like Thomas A. Nolfi Inc. for more information.