Auto Insurance And Tips To Save

Top Ways to Save Big On Auto Insurance

In today’s fickle economy, saving a dollar means a lot more than it used to.  If you own a vehicle, one big annual expense that you probably don’t look forward to paying is your auto insurance premium.  And the unfortunate thing is that many families and individuals are paying far more than they need to for auto insurance coverage.  Let’s look at how you can turn a nickel into a dime by saving big when it comes time to renew your policy. 

Determining the precise amount of coverage you will need on your vehicle can be a tricky undertaking, but make sure that you actually need the coverage that you purchase.  The truth is that most people pay for a lot more insurance coverage than they will ever need, even if they do end up in an accident.  In general, the amount of coverage that you will need depends on the age of your vehicle and any outstanding debt that you owe against it and the assets that you are trying to protect (other than the vehicle that you are driving).  Typically, if you do not own your own home or have a substantial number of assets, like savings, CDs, stocks and bonds, and you do not have a newer model car or your vehicle is not financed, you do not need much more than the minimum liability coverage that is required by the state in which you live. Inversely, if you own your own home or business, or if you have a significant number of assets to protect, you will want to go with a more expensive and more comprehensive auto insurance policy.  It’s that simple. 

Another way to save big on your auto insurance is to look for discounts that you might qualify for but are not currently receiving. The most popular discounts are awarded for:

• Being a member of an auto club or a professional organization, such as AAA
• Safety equipment that is installed on your vehicle, like airbags and anti-lock braking systems
• Equipment that deters theft
• Participation in a defensive driving course

You can also get discounts based on the type of vehicle that you drive. As a rule of thumb, the smaller the engine, the less expensive the vehicle will be to insure. Having a good driving record can also lower your premiums at renewal time, and so can taking out more than one insurance product with the same insurer. For example, if you are purchasing home, rental, life, or health insurance with the same company, your loyalty will usually be rewarded with lower rates on one or all of your policy purchases.

And finally, one of the best ways to save insurance is to compare prices – and there is no better way to do so than to shop online. Many websites offer to compare the cost of auto insurance with multiple insurers at once, and then you can opt to have quotes delivered to you via email, telephone, or even through snail mail.  Some drivers have reported saving hundreds of dollars annually by doing a ten minute comparison online.

In sum, when it is time to renew your auto insurance policy, take a few minutes to review your coverage needs, seek out discounts that you or your agent may be overlooking, and compare the price of coverage with multiple insurance companies in order to save big.