Great Tips for Saving on Your Insurance

With the economy in dire straits, many people are searching for money saving opportunities.  Here are some ways that you can save money on your car insurance.

1. Shop around.  Different companies use different methods to rate for insurance, so the only real way to ensure that you are getting the best rate possible is to shop around.  Companies such as Geico and Progressive offer quick and easy quotes online, while others require that you call in and talk to an agent.  But shopping around, even if it takes more time, can really pay off.  When you are considering an insurance company, however, it is important to consider all factors.  Things such as claims service and stability of the company can make a difference, too, so be sure to do your research before committing to a certain company.
2. Consider all available discounts.  Different companies offer various discounts, so you should check all the discounts that are available to you by contacting your insurance company.  An insurance agent can review your policy for all available discounts, and they can tell you what you have to do to qualify for additional discounts.  Many people never receive discounts that they could possibly be eligible for because they don’t ask about them, so be sure to get all of the information you can.
3. Carpool to work.  Generally speaking, the less you drive, the lower your insurance rate will be.  This is because you pose a lower risk of getting into an accident or having a claim when you use your car less.  You can potentially save on your insurance rate by putting fewer miles on your car in a year.  You can drastically lower the number of miles you put on your car by doing things like carpooling, using mass transportation, and walking or bicycling to places that are close.  Once you have started habits which lower the amount you drive, be sure to let your insurance company know, so they can update your policy for you.
4. Quote before you buy a car.  Different cars receive different insurance rates based on both the potential damage they can cause in a car accident and the potential cost to fix them if they are damaged.  It is always a good idea to get a quote for insurance on a vehicle before making the final purchase decision.  The difference in rates between models can really help you to make a great decision in acquiring a new or used vehicle.
5. Choose a car with great safety features.  Most insurance companies give extra discounts based on the safety features of your vehicle.  Choosing a vehicle with anti-lock brakes, air bags, and other safety and anti-theft features can get you some great discounts on your policy.  The great news is that newer models keep expanding the safety features available, so as time goes on, it is getting easier and more affordable to get a car with great safety features. 
6. Try to avoid installment fees.  Many insurance companies charge installment fees if you choose to pay your policy premium in installments rather than in one lump sum.  You can avoid these fees altogether by paying the policy in full.  If you’re like many people who can’t afford to pay for six months of insurance at once, you can still take some steps to minimize these costs.  Ask your insurance company if they offer any kind of waiver or discount on these fees by signing up for recurring payments, or for making an electronic payment directly from your checking account.  If none of these options work for you, you can still potentially save on these fees by checking with different companies to see which one offers the lowest installment fee.  Remember to also check to see if your insurance company charges a fee for making late payments; many companies do so but some do not, and you could potentially avoid hidden fees by choosing the right company.
7. Drive safely.  A bad driving record, or even a lone speeding ticket, can cause your rates to increase significantly.  You can avoid surcharges and rate increases by driving safely and maintaining a clean driving record.  Many companies also offer special discounts for those that have great driving records, as well as special benefits like accident forgiveness and special pay plans.  Even if you don’t have a great driving record, you can improve your driving history by following the law and avoiding any tickets or accidents.  Most companies rate for your driving activity for three to five years, so by avoiding speeding tickets and other activity, you can improve your driving history and get better insurance rates. 
8. Think before sacrificing protection.  It may seem like a great idea to “save money” by lowering your liability limits or increasing your deductibles, but this may not save you money in the long run.  Although there might be a difference in the amount you pay from month to month by lowering your policy limits, doing so means that your insurance company will pay less in the event of a covered claim, and you will be responsible for the difference.  Medical expenses and property damage can add up very quickly in a car accident, and you don’t want to be responsible for paying thousands of dollars in damages because you wanted to save a few dollars a month on your car insurance.  Make sure you think through the consequences before decreasing your limits significantly. 

These tips will help you to save money on your car insurance.  Check back for future articles about insurance tips and information!