Lowering Insurance Rates

 

Vehicle insurance—everyone needs it (the laws say we do) but we hate to pay the price for getting it. So how do you lower the impact that this required expense makes on your wallet each month? Here are six suggestions and ideas that can help you lower the cost of this necessary evil.

  1. Mama told you that you "better shop around." Like the old song says, you should shop around. Each insurance company has their own rates that they charge with their own unique discounts. You should get a minimum of four quotes from different insurance companies. This provides a comparison for you to use in determining which company to go with.
  2. Coverage Amount. You need to know exactly how much coverage you need. Full coverage (which is a higher monthly payment) will compensate you if you total your car. On the other hand, if you choose to go with the minimum coverage, such as liability only, you'll have a lower payment, but if you get into an accident, the policy won't pay to fix your car.
  3. Not all cars cost the same. The type of vehicle you drive will have a significant impact on your insurance rates. For example, a Ferrari F-40's insurance premium is going to be very different than the premium for a Geo Metro. Keep this in mind when deciding on what kind of vehicle to purchase.
  4. Higher deductibles can save you money. Go with a higher deductible, which is the amount you pay out of your own pocket before your insurance company helps out. Depending on the amount that you choose for your deductible, you could save as much as 15% to 40%. Keep in mind that if you get into an accident you will have to pay the amount of your deductible before your insurance kicks in, but you can save quite a bit on your monthly bill.
  5. Purchase different types of policies from the same insurance company. Many agents and companies offer a multiple policy discount. Ask your agent what types of discounts are available if you purchase homeowner's or renter's insurance from them as well as car insurance. You might be pleasantly surprised by their answer.
  6. Good credit is important. More and more in today's world insurance companies, like many businesses, are using an individual's credit history to determine what they charge their clients. They do this to avoid a cancelling a client due to non-payment.

Comments

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What is seven minus 5?

2017-03-04 14:51:11

Lisa

Most people also don't realize:

1). There is a portion of your policy you pay that covers your expenses if you are in an accident. This part of your premium can be added to your medical expenses paid out during the year. If you meet the percentage requirement, (of which this can add a HUGE AMOUNT) you will be able to write this portion off as medical expenses on your state taxes. 😁

2). I had an accident and was renting a vehicle until I could get some money for a down payment on another so had no need for insurance coverage.
When I finally purchased a vehicle and called my agent, I was penalized for having NO coverage for the six months prior - even though I had NO VEHIVLE to insure. I was advised that I should have placed my old, totalled vehicle in "storage" to prevent that penalty.
3). If your bad credit is due to a family of personal tragedy (loss of income, death in family, injury, etc), call your insurance company. Many have the ability to review your credit report and if your credit was good prior to the tragedy, they will use that score instead of the bad one that, that it fell to after the tragedy occurred.


2015-01-28 10:19:18

Bill Mihalovits

Another tip is to negotiate with your current insurance company. In my case my insurance went up substantially after several years with the same company, driving the same car, and no claims. The insurance agent told me that this was an "across the board" increase being applied to everyone. I then got a much quote from another insurance company (who will often give you lower rates to get your business) and called my original insurer and offered them the chance to either beat this quote or lose my business. They agreed to beat the competitor's quote.
NOTE: be sure to get a quote for the exact same coverage. Have your current policy in hand when you call.


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