Sudden Insurance

Car insurance is a necessary evil; we are required by law to have it, yet we hardly ever use it. Like all other bills, I have researched ways to save money on car insurance that actually work. Some of these options are well known and some are new. To be thorough, I have included the old and the new ways to save money on car insurance.

Multiple Line Discount – one can take advantage of deep discounts by insuring all cars, boats, homes, and apartments with one insurance company.

Drive Less – If you were laid off or work from home, tell you agent. The distance that you have to drive varies by agency, but with State Farm you will receive a discount if you drive less than 100 miles per week.

Discount for Safe Driver – You might be eligible for a rate reduction if you have not been in an accident or received a ticket for several years.

Raise your deductible – Raising you deductible can save you hundreds of dollars every year, but make sure you have money saved to cover the higher deductible if needed.

Shop around — when your premium goes up, let your agent know you are looking; chances are they will find some other discounts.

Update agent if you are a parent under the age of 25 – You might receive the same rate reduction given at the age of 25. However, you will not receive another deduction once you turn 25.

Full coverage or liability – You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.

Talk to your agent before buying a new car – The shiny red sports car and the gadget filled luxury car might look good on the dealership floor, but the premiums might cost an arm and a leg. Check prices with your insurance agent to help you make the best decision.

Avoid short-term policies – Penalties are often applied, think long-term

Avoid lapses in your insurance – If you let your policy lapse, you are likely to be seen as irresponsible or high-risk. As a result, your policy will be more expensive than it was before to renew.

Don’t insure vehicles you don’t drive – Take the old Chevy that you have been working on for years off your policy. However, some states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as inoperable” to avoid any complications or penalties.

Refresh your driving skills – Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.

Avoid accidents and tickets – Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 3-5 years.

Insure teenager under different car – The cost to insure a teenage driver is insane. If you have the money, purchase a used car for your teenager and only purchase liability; the amount you save will shock you and your teenager will be happy with his/her own car.

Keep your credit score high. Some insurance companies will charge people with low credit scores a higher premium because they are expected to file more insurance claims.

Pay semi-annually – This is my favorite!! A surcharge fee is generally applied to customers who pay monthly. This fee is easily avoided by paying semi-annually. Begin to save up enough money to make the 1st semi-annual payment. After you make that payment, automatically transfer the monthly insurance payment into a high-yield savings account to earn interest. When you receive your semi-annual bill, pull money from your high-yield savings account to cover your premium cost. Any money earned from interest is profit.

Out of the 15 options listed above, I hope at least one of them will help you save money on your car insurance.