How to Reduce Your Car Insurance Costs
Here's what you can do now to reduce all the money you have been paying the insurance companies. This is money that now can stay in your pocket - not theirs. Remember the average person spends hundreds of dollars every year on insurance coverage and up to 50% can be avoided. A lot of coverage is not as important as your insurance company would have you believe. Let's start with some areas that can reduce what you are now spending.
Your insurance costs are influenced by the following factors: the value of your car, the model of your car, your driving record, where you live, your age, sex, marital status.
ALWAYS ASK FOR HIGHER DEDUCTIBLES
Increase the deductible on your car to the highest level. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your car insurance costs substantially.
For example, increasing your deductible from $100 to $500 could reduce your collision cost by 15% to 40%! Remember the deductible is only paid if the collision is your fault, not the other party's. So look back at your driving history. What are the chances of you causing an accident? Remember you donít want to claim anything under $500 because your insurance rates will increase, depending on how many claims you have made.
If you are a male under 25 and have parents that can register and insure the car under their name with you as the principle driver, do it. If they live in a suburban area, the rate will be even lower than in major cities.
Have teenagers? Do you own your own business? Most insurance companies DO NOT increase premiums on company cars for teenage drivers.
Business use or travel to work creates the highest premiums. If you do not use your car for these activities make sure your insurance company knows that this could save you a lot of money. If you are a two-car family, try to use one for work and the other for occasional driving. Make sure you tell your insurance agent because it will save you big dollars.
Is your car worth less than $3000 wholesale? If so, it does not pay to carry collision coverage. The risk-to-reward ratio does not warrant it. To get the best idea for todayís value, go to the Kelly Blue Book to check your car's trade-in value. www.kbb.com.
When you visit your agent, donít forget to ask for any of the following discounts that apply to you.
ELIMINATE DUPLICATE MEDICAL COVERAGE
If you have adequate health insurance, you may be paying for duplicate medical coverage in your car insurance policy. In some states, eliminating this coverage could lower your personal injury protection (PIP) cost by up to 40%!
Compare FREE multiple car insurance quotes from the sites listed here. The insurer you select should offer both fair prices and excellent service.
Donít be afraid to shop around for prices; we all have a tendency to stay loyal to our companies Forget it. There is no loyalty from them to you, so always shop around.