When was the last time you review your car insurance policy. Chances are that you are paying more then you need to for your car insurance. You should review your car insurance policy every year or so to adjust the coverage as your car ages and your financial and personal situation change.
Here are a few tips when looking at your car insurance policy to see if you can reduce your car insurance cost while getting the protection you need.
Request Higher Deductibles: The easiest way to reduce your car insurance cost is to assume more risk by getting a higher deductible for your collision and comprehensive coverage. By increasing your deductible from $500 to $1000, you may be able to lower your premium by as much as 30 percent.
Drop Some Coverages: If you have an older car with high mileage, and a book value of less than 10 times the amount you are pay for coverage, you may want to consider dropping collision and comprehensive coverage altogether. Collision and comprehensive can account for 40% or more of the premium of your car insurance policy, and covers only up to the car’s book value. The coverage is not worth buying if any claim you make exceeds the cost of the insurance and the deductible amount. You can check your car’s book value with Kelley Blue Book or Edmunds.com. Be sure to take into consideration the car’s mileage and any preexisting condition.
Drive a Low-Profile Car: If your car is on the list of top ten most stolen cars, chances are that the car will be more expensive to insure. Other factors that insurance companies use to determine the cost of a car policy are the car’s reliability, cost to repair, and safety record. Your can check with Insurance Institute for Highway Safety’s web site for a rundown of your car’s risk ranking.
Professional Organizations and Groups: You may be able to get discounts because you are a member of a group or organization, such as AAA, AARP, military groups, professional organizations, or even large companies. Ask your insurance agent about membership discounts, because the insurance companies won’t always tell you about it.
Low Mileage Discounts: Many car insurance companies offer “low-mileage discounts” to policyholders who carpool to work or drive less that the average number of miles each year. Currently the average used by most companies is 12,000 miles. You should ask your insurance agent to find out if you qualify.
Go for Safety Features: Certain safety features on your car will also lower the cost of insuring your car. These features varies from state to state. In some states, such as New Jersey, New York and Florida, laws require the car insurance companies to give drivers a discount for having certain safety features on their car, such as anti-lock brakes, airbags and automatic seat belts. Certain approved alarm system or anti-theft device can also get you additional savings on the premium for your car insurance policy.
Discounts for Teen Drivers: If you have teenagers and they drive, it will be cheaper by adding them to your car insurance policy instead of buying separate policies. If your teens go away to college that is more than 100 miles from home and don’t bring a car along, you can get additional discount off your policy. If your teens maintain GPAs of 3.0 or higher and pass an approved drivers’ education course, you may qualify for additional discounts of as much as 25% off the cost of the policy.
Defensive-Driving Classes: If you pass a defensive driving class, you can qualify for a 10% discount on the cost of the policy. In some states, you can take the course on line.
Combination Discounts: You can expect a 10% to 20% discount off the cost of your policy if you insure both your home and your car with the same company, or by insuring more than one car with the same company.
Loyalty Discounts: Just about all car insurance companies will reward you for staying with them for more than one year, and you could earn a discount of 10% or more off the premium for your car insurance policy.