In a sluggish economic climate, we are all looking for new ways to save money. In recent months, not only a significant number of American households, but also households across the developed world have had to make changes to their spending and living patterns.
One major expense facing most Americans is an expense related to transportation, namely your car. If you have a car, you will need general auto insurance. Are You Paying Too Much? You probably are. Take the following checklist to your insurance provider to see what kind of savings you can make before your next payment.
Take an Online Driver Education Course
In most states, you may be eligible for a discount of 10% or more if you enroll in an online defensive driving course. Some states do not recognize these courses, so before taking one, it is best to check with your insurance provider to see what kind of discount they offer with a defensive driving course. Visit Wannadrive for a list of driving schools in your city or state.
take a low risk job
Insurance companies keep more statistics than you can imagine. One of them are accidents by profession. If your chosen occupation has a higher than average accident rate, your premiums will reflect this. Engineers pay lower premiums as engineers have fewer accidents as compared to other professionals. Simply doing some research and adjusting your job title may be enough to reduce your monthly premiums.
tell them you’re retired
If you are retired, you may be eligible for additional discounts. We have all seen advertisements. This savings especially applies to you if you have a clean driving record. If you’re retired and your insurance provider doesn’t know, you could be missing out on substantial savings.
join a professional organization or auto club
Select organizations and auto clubs receive discounts at all types of retail outlets including hotels and restaurants. Membership in some of these organizations may also help you lower your insurance costs. If you are a member of an organization or club, it doesn’t hurt to ask your provider whether members of that organization get a discount.
combine your insurance
Some insurance companies may reduce your premiums if you use their company for both home and auto insurance. If you currently have two different providers for home and auto insurance, ask them both what type of premium reductions you are eligible for if you combine your home and car insurance into one.
auto safety features
Your insurance rates may also be lower if your vehicle has any additional safety features. Look for vehicles that have air bags for both the driver and passengers, traction control, good head restraints, anti-lock braking and all wheel drive are all features that improve the safety performance of your vehicle. Bring a list of your vehicle’s safety features to your insurance provider and ask specifically how additional safety features reduce your premiums.
assume more risk
By raising your deductible from $400 to $800, you may have to pay more out of pocket in the event of an accident, but you save significantly on your monthly premiums. If you are a prudent driver, the savings you make by paying a lower premium will pay for itself over the course of a year. The coverage you have will not change by raising your deductible.
be a good citizen
Just having a good credit score, or doing well in school can lower your premium. Insurance companies have found a correlation between credit score, academic performance and your likelihood of being involved in an accident. If you have a good credit score and do well academically, you may be eligible for a discount.
pay in small installments
Insurance companies will charge you a fee for paying in instalments. The higher the installments, the higher the fees to be paid. If you are financially responsible enough, ask your insurance provider about different payment options, such as paying once a year, paying every six months, or paying quarterly. Be careful using this strategy as it is possible to lose your insurance by missing just one payment.
demand better service
Believe it or not, there is still some ethical fabric in the business world. If you have been with the same insurance company for years, ask them for a discount as a loyal customer. If they refuse, shop around. Another provider may offer better rates, or provide you with better information regarding your insurance needs.
Hopefully, this article has made you a little wiser when it comes to buying general auto insurance. Use this information and convert it to dollars and cents.
