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Put more money in your pockets NOW - Auto Insurance
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We have all heard the saying "It is not how much you make but how much you keep that really matters". By reviewing your auto insurance policy annually you could potentially keep hundreds of dollars. Sure you could call around for better prices but having a history with one company could be to your benefit. A track record of few claims and paying your bills on time will make it less likely that you will be dropped when a large claim does arise. Let's see what you can do to put more money in your pockets by lowering the cost of your auto insurance without changing companies. Here are seven ideas that could potentially save you money.
Raise your deductibles: A few years ago it was common to see $100 or $250 deductibles but the landscape is shifting. Too many little claims may cause you to be dropped by your insurance company. A $500 or $1,000 deductible could save between 10%-20% per year and keep you in good standing with your carrier. If it does not pay to put in a small claim, then having a small deductible is not providing any economic benefit.
Take a defensive driving class: These classes will save you 10% on your liability and collision rates for three years. Classes usually cost less then $40 per person and consist of six hours of classroom work (there is no exam to pass at the completion of class). Contact your insurance agent or AAA for information on when classes are offered. As an added benefit, you will receive up to a four point reduction on your DMV driving record.
Combining policies: Many companies will offer a discount for having more than one policy (i.e. auto & homeowners) with them. Certainly it only makes sense to work with one company if the combined rate with the discount is less then what you are paying now.
Improve your credit score: Your credit score is often used as part of the underwriting process along with your driving record and type of vehicle you drive. The better your credit score, generally the less expensive your rates. Not only could an improved credit score save money on your auto insurance but it also will benefit you in other areas such as mortgage rates and auto loans.
Pay in full: Many companies charge as much as five additional dollars for each installment payment. Over the course of one year this could add as much as sixty dollars to the total cost of your insurance. On a $600 policy that's a 10% savings for paying in full instead of in twelve monthly installments.
Do you need collision: If you are driving a car worth less then $4,000 evaluate whether or not you still need collision coverage. Remember…if you are in an accident, you receive the book value of the car not what you can sell it for. If you have a loan you might need to retain this coverage.
Less expensive car: Certain cars cost more to insure because they are more likely to be stolen, cost more to repair or are more prone to accidents and tickets. Before purchasing a new vehicle, factor in the potential cost of more expensive insurance. You can always call your agent and have them provide you an idea of how your insurance might change with a new car.
Your agent should be able to help you sort through these options as well as the various other discounts that companies provide. Experts recommend you review your policy at least annually but these changes can be made at any time. Saving a little bit here and there might not seem like much but it can add up to thousands of dollars per year and tens or hundreds of thousands over a life time.
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