Last week, I saved $100 off my auto insurance policy. It’s really pretty easy and there’s probably nothing you don’t already know. All I did was take action. Call, comparison shop, and keep calling.
While I was looking through different options and telling my insurance agent again that his price was too high, I made a list of what could save us more money on auto insurance.
May you find more savings than I do by calling your agent today.
The Details
- No Accidents – Everyone knows that having no accidents on record for three years (some companies want five years, others want ten years) lowers your rate but have you tried to find out recently?
- No Violations (Tickets) – Read point #1 again please.
- Experience – Young drivers are much more likely to get into car accidents so the premiums are high. It could be worthwhile to buy an old beater for your children while they gain experience. I’m sure they are happier since they have access to their own car as well.
- The Car – How come no one really thinks about insurance when they need to buy a car? Some of us are are finally starting to worry about gas mileages but insurance can be a major car expensive. Calling (or easier yet, getting a free online insurance quote) before you buy the car can literally save you thousands of dollars for the few years that you own that car.
- Has Air Bags, Alarm, Anti-lock brakes, Daytime Running lights – Getting an alarm installed is always safer but it may also make financial sense because it could lower your premiums.
- Muted Colors – Ever noticed that bright colored cars are pulled over just a little more often? They are easier to spot in a sea of over-speeding maniacs on the road and the insurance companies know this too.
- Good Student – Do you go to school and get good grades? Fax them your report car and get an automatic discount.
- Seldom Drive the Car – Remember to calculate the mileage correctly when you get your policy. The less you drive your vehicle, the lower the premium should be.
- Are Part of a Professional Association – Every insurance company partners with many professional associations, and it’s easier to find out if you can benefit by doing it online since they show the full list.
Decisions
- More Deductible – Most of the time, you will find that raising the deductible will drastically lower your premium. If you average out the chances of accidents, it probably makes sense. With these statistics, the more cars your family owns and the longer the period that you are thinking about, the more reducing your deductible works in your favor.
- Reduce Coverage – I know some friends that have older cars who get the least coverage they can get by for their car because it’s not worth the premium at all. Unless you have an expensive and new car, think about how much fixes could be and whether paying money every month is worth it.
- Don’t Double Your Medical Coverage – Our medical insurance at work may already cover what our car insurance covers. Take some time and look it over to see whether we are double paying.
- Ask Your Family to Help – It may not make sense for you to venture out on your own if you don’t have at least 10 years of driving experience. You are allowed to be on the same policy as long as you live under the same roof. Ask for help.
Take Action
- Keep at It – Just keep calling every year. As you gain more experience on the road, age and also become married and have kids, your premium slowly goes down. Let those insurance agents know that you are on top of your policy and will always try to get the lowest price possible.
- Ask for Discounts – When I called my insurance agent, he didn’t tell me about a new policy discount until I threatened to switch to someone else. Just because they are lazy doesn’t mean there is no ways to save.
- Comparison Shop – That’s why it’s so important to comparison shop. When you have another quote in your hands with a lower price, everyone all of a sudden becomes attentive and willing.
- Having Other Insurance with the Same Company – Always run the numbers, but most insurance companies give discounts if you insure different assets with them (house, car, boat and even life insurance etc)
- Stay with the Same Insurance Company – I actually don’t think this is really worth the discount as competitive is almost always the best driver for a lower premium.
- Take a Driver Improve Course for Elders – Those courses are BORING but if it means saving a few bucks, why not?
- Pay Up Front Instead of Monthly – Some companies charge you less if you can prepay for six (or twelve) months. Every little cent counts.
Call now and save yourself some money.
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I work for Allstate, and this is good advice. Just one side note, the color of the car does not matter ever.
Last year, my daughter left home for her first year of college. Her truck stayed at home since she had to live in a dorm on campus. I called our insurance company and told them the situation and we received a refund of part of her coverage. Anything you can do to lower a teenager’s insurance cost is good.
I work for Allstate, and this is good advice. Just one side note, the color of the car does not matter ever.
All of these ideas are great, and I do have a very cheap insurance policy. But remember when you lower coverage, you also lower the amount the insurance company will pay when/if you get into an accident, which then means you are paying for it yourself. Sometimes saving a few bucks isn’t worth the risk of losing everything else.
Just for reference I pay $44 a month for the highest amount of coverage possible. If your insurance agent is only selling for one company, you are wasting your money.
You can also look into credit unions for auto insurance. For those in the military/veterans, I recommend looking into USAA. I got a slightly better policy at around half the cost that I had previously been paying Geico. I’ve heard other credit unions can get better rates than a non credit union insurance provider.
Great timely post. Found your site from the Man Vs. Debt Blog Carnival and you have some great tips. My wife and I were thinking about ways to get that bill down and now I have a to-do list for her.
Wah, that’s great. I wish I could do that as well by save $100 – $ 400. That is lots man. However, it is standard rate for Malaysia.
Excellent advice. I got my car insurance lowered because my mileage dropped and since my car is a 1993 model, I dropped collision also.
Along the same line, I got my home owner’s insurance lowered by $359 per year. I simply called and kept digging until the agent found ways to lower my payment while still maintaining the coverage I need (no bells and whistles).
Another surprise experience was getting my road assistance insurance reduced by half. I intended to cancel it because I thought the $98 was too expensive as I no longer drive much or further than 30 miles from home. When I said I wanted to cancel, the agent offered me the exact same coverage at half price.
It never hurts to ask. My total savings were approximately $600 per year for the small price of a half hour or so on the phone.
Remember to just call every 12 months and not be complacent even though you got savings once and think it would be hard for them to give you more discounts. To much of most people’s surprises, the more you call, the more you save.
I just did the same — saving myself $400/year on my insurance.
We were paying way too much money to have our 2nd car (a 97 Tercel) sit parked for 30 days each month, so I called and got a low-mileage discount and dropped collision and comprehensive coverage, since the car isn’t worth that much.
Edmunds.com has a great list of ways to save:
http://www.edmunds.com/reviews/list/top10/116958/article.html