Let’s face it, times are hard right now and, like me, you’re probably looking for ways to save money wherever you can. If so, have you paid much attention to your auto insurance rates lately?
According to the folks at Geico, a 15 minute phone call could save you 15% or more, but if you shop around you just mind end up saving even more. Here are a few tips for getting the best rate possible on your automobile insurance:
1 – Start shopping around NOW instead of waiting for your current policy to come up for renewal. If you wait till the last minute you’ll likely find yourself scrambling just to keep the insurance coverage you have now from lapsing. It’s hard to properly consider all the available options when time is running out on you.
If you find a really good deal from another company, go ahead and make the switch now in order to lock in those savings. In most cases you won’t lose any money by switching because you’ll be entitled to a refund for the unused portion of the premium you have already paid when you cancel your current policy. Just be sure that the new policy is in effect before cancelling your current one in order to avoid a lapse in coverage.
2 – If you have gotten a speeding ticket within the last few years check with the DMV to see if it is still on your driving record. If it is, you might be able to sign up for a safe driving class which could result in having some points taken off of your record. The fewer points you have on your driving record, the lower your auto insurance premium will be.
3 – Get your hands on a current copy of your credit report and try to get any negative items removed if at all possible. A simple reporting error from a creditor can cause your insurance rates to skyrocket since most insurers now base their rates in part on their customers’ credit ratings. By law, you’re entitled to one free credit report from each of the three major bureaus every year. Click here to get yours.
4 – Sell your expensive new car and purchase a used one in a cheaper model. This tip alone can save you hundreds of dollars a year in insurance premiums since since new cars and more expensive models are a lot more expensive to insure than older cars that sold for less when they were new.
5 – If your car is paid for, is several years old and has lots of miles showing on the odometer, strongly consider dropping the collision and comprehensive coverage from your auto insurance policy. In a nutshell, if the annual cost of comprehensive and collision coverage combined exceeds 10% of the vehicle’s “blue book” value, it makes little sense to keep paying it. Instead, drop the coverage and either put the savings into a savings account or apply it towards paying down your debts – the choice is yours. Be sure to keep your liability and personal injury coverage however!
6 – Raise your deductible. If you agree to pay more out of your own pocket when it comes time to file a claim, you’ll receive a considerable break on your premium in return. Insurers get a warm, fuzzy feeling when they know they won’t have to get out their checkbooks every time something minor happens to their customer’s vehicles.
In conclusion, always remember that automobile insurance is one of those things that everyone needs (and most states require us to have) but no one likes to pay for. While we cannot avoid the cost of insuring our vehicles altogether, the steps outlined above can help keep that cost to an absolute minimum.
About the author: Rick Rouse is the owner of RLROUSE Infoblog.