Car insurance is a mandatory expense, but you should not pay more for it by using the wrong insurance company. A few simple common sense steps, combined with smart web browsing can really save you a lot of money when it comes time to renew your policy.
Step 1 - Pay A Higher Deductible
One of the easiest ways to cut your car insurance premiums is to reduce the risk for the insurer and accept a higher deductible on your policy. Your insurance company's standard deductible may be $250, but if you raise your deductible so that you pay the first $500 of any claim, you will receive a sizable reduction in your monthly premium. This reduction is due to the fact that you are assuming more of the risk. While this may seem like a bit of a gamble financially, the odds of being involved in a collision are relatively low and your deductible would only be a one time payment.
Step 2 - Security Devices Equal Big Savings
Security devices, especially anti-theft devices can also result in a smaller car insurance premium. Discounts of more than 20% are common. Most insurers insist on a minimum of an alarm system in new cars. If you live in a high risk area, it makes sense to seek out more security devices for your car. A couple more security devices may save you money when your insurance is due.
Step 3 - Less Miles Driven Equals More Money In Your Pocket
If your annual driven mileage is 5,000 miles or less, ask your insurance company if they offer a discount.
Step 4 - Check Your Named Drivers
Adding a driver to your policy can increase or decrease your premiums depending upon that drivers age, sex, and personal driving record. Adding a younger driver will increase your premiums. However, adding a driver over 30 with a clean driving record can cut actually cut your premiums down, particularly if the named driver is female.
Step 5 - Make Sure To Shop Around
The largest car insurance savings might just come from shopping around a little bit. There are massive differences between insurance carriers for the exact same car and drivers. Use a good comparitive online site and take their best quote as compared to what you are paying now for the exact same coverage.
Next time your renewal policy arrives, don't just blindly accept the bill. Give your money to the least expensive insurance company. Make sure you use the steps above and get the best coverage at a great price.