How can I save money on auto insurance?

With wages going down or frozen we are still seeing prices going up for auto insurance. How do you save money on car insurance? There are a few basics you can do that will help.

If you use a broker or agent then ask about getting the best prices. Your adviser wants to keep your business and will let you know if they are giving you the best deal available. If you prefer to shop online then there are services that will give you quick quotes. Be careful - the quote is based on the information you provide. If you do not disclose a ticket or accident then the actual price will be much higher.

Be aware that some insurers use credit scores when rating for insurance. There is a correlation between higher credit scores and less claims. If you are concerned about this, then talk to your adviser.

When getting quotes be sure to compare the coverage. The amount of Public Liability and Property Damage (PLPD) can vary. With claims coming in well over the $1 million mark you should consider a minimum of $2 million coverage. The SEF 44 should match.

Higher deductibles can save you money. How much money can a deductible save? Do a comparison as it might not be worth your while for the small savings you might receive. Remember, the deductible is the amount deducted from a claim that you are responsible to pay.

How important is it for you to have transportation? If you need a vehicle to get to and from work then consider having the loss of use coverage (SEF 20) and possibly increase the amount. With car dealerships reducing staff it can take longer for repairs to be completed. Your $750-$900 limit may be exhausted before your vehicle is ready.

Consider the total costs. The Waiver of Depreciation (SEF 43) is money well-spent when your vehicle is stolen or written off in an accident. Purchasing a Waiver of Accident coverage will protect you from a rating when you do have a fault accident.

Be careful about purchasing creditor insurance from a dealership. This is often much cheaper when placed with a life insurance broker. Also be aware that many insurance companies do run a credit score. Drivers with better credit scores often get a lower rate. If your credit score is not good to excellent then you might want to work at improving how you handle your finances. A good credit score does not come from being rich. It comes from good financial management.

If you are not using an extra vehicle consider parking it on a seasonal basis. Most insurance companies will give a significant reduction for dropping the coverage. Also consider not taking a vehicle to and from work. Look at the costs of riding the bus, walking or using a bicycle in the warmer months. Not only will it save you money but your health will improve as well!

Be sure that you are getting all the discounts that you deserve. Different companies will offer occupation discounts even if you have retired from that profession. Driver training can give a very nice discount for a new driver. Loyalty discounts will often keep your business with one insurance company versus leaving for another. There is always talk that you should keep home and auto insurance with the same company. If the one company cannot offer your the best pricing then this may not suit you.

If you use a broker or agent then try to develop a strong relationship with that person. Let them know that you need to see value in your insurance.

money.jpg