In today’s economic times, saving money is a top priority on everyone’s agenda. One of the best ways to save money is to re-evaluate your insurance yearly. This simple step may save you possibly hundreds of dollars. Following these tips may help you to significantly cut the amount of money you spend yearly on your insurance.
- Shop your insurance around – First and foremost shop around. Insurance rates are highly competitive and vary greatly. Depending on the state you live in you may save hundreds of dollars on your coverage. Staying with one company who offers a cheaper rate may not always be the best option. In many cases with insurance companies, loyalty equals lower rates, however, due to economic times this may no longer be in your best interest. On the other hand, letting your insurance carrier know that you are shopping your insurance coverage around they may lower your rates, matching a competing insurance carrier’s rate. Remember to be honest and get your quote in writing. Give the same information for each quote so that you can compare exactly the same coverage for each quote.
- Many companies will offer a discount for insuring your home (or renter’s insurance) and your automobiles with the same company. You may find a better rate with another company for one of the policies, however when you total both your cost may actually be lower.
- If you have a little money in the bank such as some type of emergency fund, then raising your deductible to reduce the cost of your premiums may be an option. Higher deductibles equal lower insurance cost. Raising your deductible has been found to save consumers from 15 to 30 percent.
- If you have an older vehicle then dropping your collision and comprehensive coverage may be an option. In doing so you will be lowering the cost of your premium, however, if you are involved in an auto accident, you will not be covered for the damages to your auto. A good rule of thumb is if your vehicle is older than ten years or worth less than approximately $1000. When dropping these coverage’s you should make sure, you have enough money to replace your automobile in the event of a loss.
- Re-evaluate your policy and decide which “extras” you are able to do without on your policy. For example, towing or rental reimbursement, roadside assistance and loan or lease payoff. Some of these services may be available for a better value thru companies such as AAA. These little luxuries add up. If you have not used them, they may be worth dropping.
- When you are in the market for a new vehicle, get insurance quotes for the different vehicles you are contemplating. Rates are based on the cost of vehicles, how often that particular vehicle is involved in auto accidents or is stolen are major contributors to the cost of your insurance.
- Never let your insurance lapse. The cost of allowing your insurance to lapse can be very substantial. Not to mention the fines most states charge for no automobile insurance, you may also find it difficult to find an insurer who will provide you with insurance if you are not presently insured. These customers are considered high-risk and most insurance companies charge more for these drivers.