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Money Tips #1: Reduce Auto Insurance Costs

Auto Insurance could a big expense in these days when one is trying to reduce costs and save money.  And guys, the cost of maintaining a car is not just from the gas but also the car insurance you pay through websites similar to even when you are NOT using it even if it does provide peace of mind.  So it does make sense to at least think about it and reduce the expense. I remember when I first talked to an insurance agent for quotes after coming from India.  Within a day of shopping, my total expense had come down to half of the original quote in the morning.. for the same insurance coverage and same policy by the same company!  Therefore, guys search around!

I will try and bring about some money making tips in this market for you all.   Today lets review things on auto insurance.

I have found a few things help in reducing the cost of car insurance;

  • Shop around for Better Rates. Rates can vary greatly from company to company, so be sure to look around to find the best deal. Try large and well-renowned companies like this car insurance provider as well as smaller and more local companies. A local independent insurance agent can offer more choices and savings because he or she can review multiple options to find the right mix of companies, policies and rates for you.  An agent can also give you insider loopholes or areas to cut cost.  Ask them!  For example, smaller cars with lower horsepower are less expensive to cover.  Also, If you are not going to drive a car much, let the insurance agent know.
  • Study hard and more. If you or anyone of the drivers is a graduate – the more you have studied, the lower your insurance.  Students who meet a certain GPA requirement, get better rates.
  • Keep your policy updated. If you have moved, gotten married or bought a home, check with your agent and ask her for lower rates.
  • Install safety mechanisms. Get some safety devices/alarms installed on your car.  It helps. If you have some anti-theft mechanism like alarms etc, that reduces, so if you don’t have one… GET ONE! Always park your car in as safe a place as possible too, ideally a garage which would bring your premium right down. Installing a security system from somewhere like Verisure within your garage, would be ticking every box.
  • Drive Safely. Have a good driving record.  Make sure you have fewer tickets and they get paid off.  Its not the cost of ticket that is hard on you, but the increase in the premium! Even drivers with poor driving records must have car insurance too. Companies such as Truly Insurance offer General Auto insurance for people who are in this situation so they are still able to drive their cars without facing the possibility of getting into more trouble.
  • Evaluate yourself. If you are a safe driver and have a good record, then it might make sense to raise your deductible and lower your premium.  Just raising your deductibles by $500 could reduce your Collision and Comprehensive costs by 15 to 30 percent.

Here are some good tips I found from AllState Insurance.[1]

  • Slow down. Drivers who have had accidents or serious traffic violations usually pay more than those with clean driving records, so consider safe driving a financial investment. With Allstate’s safe driving discount, safe drivers can save up to 20 percent.
  • Buy the right car. A car’s value, age, safety record and repair costs, as well as the likelihood that it could get stolen, all help determine insurance premiums. Also, certain car features may generate insurance savings. For example:

o In most states, a car equipped with factory-installed anti-lock brakes can save you up to 10 percent, and airbags or motorized seatbelts could reduce your premium with Allstate by up to 30 percent.
         o A brand-new, never-been-titled car could reduce your Allstate premium by 5-20 percent, depending on the state and model-year of a vehicle.

  • Pay your bill through automatic withdrawal. Many insurance companies offer payment choices through automatic withdrawal. In addition to the convenience, the Allstate(R) Easy Pay Plan offers automatic withdrawal from a person’s account and may provide a discount of up to 5 percent on premium, depending on the state.
  • Insure your property and car with the same insurer. Drivers who have Allstate property insurance may qualify for lower auto insurance premiums by as much as 10 percent, and could also save on their property insurance, as well.
  • Study hard. In most states, full-time students who meet GPA requirements could save on auto insurance premiums with a discount of 10-20 percent.

Reference Links:

1. AllState Corporation: Smart Ways to Save on Auto Insurance.