By Michelle O’Connor (Edited by LeeAnn Shattuck)
So, you’re shopping around for auto insurance. Did you know that there are at least 11 ways that you can save money?
1. Multiple Policy Discounts – Do you have just one insurance company for both your auto and homeowners (or renters) insurance policies? If the answer is no, you are probably paying too much for both policies. By having both of these policies with the same insurance company, you could qualify for a multi-policy discount of 10% or more.
2. Good Driver, Good Price? – It’s no secret that the better your driving record, the less you will pay for auto insurance. Most people actually qualify as “good drivers” and are eligible for discounted premiums, but do not know to ask about them. Make sure you are getting the best discount for your driving record.
3. The Beauty of the Bus - Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge significantly higher premiums if you drive to work. If mass transit is available where you live, consider it taking advantage of it. Not only will you save money on your insurance, but on gas and parking costs, too!
4. Low Mileage, Low Price – People in the United States drive an average of 12,000 to 15,000 miles per year. If you drive fewer miles than average, you may be eligible for low-mileage discounts offered by some insurers.
5. High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves or more costly to repair than most cars? If so, then you will pay a higher premium. So, ask your insurance agent for a quote before you splurge on that sports car.
6. Raise Your Deductible – The deductible is the amount of money you must pay out of pocket before your insurance kicks in when you have a claim. The lower the deductible you choose, the higher the monthly premium. If you have liquid assets, you can probably afford to absorb at least $250 to $500 if you have a claim. Make sure your deductible amounts are set appropriately for your risk tolerance level.
7. Drop Unnecessary Coverage – If you have an older car that is not worth very much, it may not make sense to have collision and comprehensive coverage on that vehicle. (Liability coverage is required by most states.) As a general rule, any car worth less than $1,000 should not have collision and comprehensive coverage. How much is your car worth? Contact Women’s Automotive Solutions for an estimate!
8. Discounts, Discounts, Discounts – Many auto insurance companies offer other discounts based on the safety features of the vehicle. For example if the car has automatic seat belts, air bags, anti¬lock brakes, or anti-theft devices, you may be eligible for additional savings on your premiums.
9. Taking the Defensive – Many insurance companies offer discounts to customers who complete a defensive driving course from an authorized driving school. These courses teach you to be a better driver and help keep you and your family safe on the road!
10. Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance in that area. In general, the more urban the area, the higher the premium. Rates also vary significantly from state to state. States like New Jersey, Massachusetts and Hawaii have higher rates, while North Dakota, South Dakota and Idaho have lower rates.
11. Credit Where It Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. You could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record.
When buying a car, you should always shop around to find the best deal. The same is true when shopping for car insurance. But, don’t just look for the best price. You also need to make sure you have all the coverage you need and that the insurance company and agent provide top quality customer service.
The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this article. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this article in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional.
Michelle O’Connor is the owner of O’Connor Insurance Associates, Inc., an independent insurance agency located in Charlotte, NC. Michelle can be reached at 704-510-8884 or michelle@oianc.com. Visit them on the web at www.oianc.com.
