As the saying goes, a penny that is saved will become a penny that is earned eventually. So if you are able to save so many dollars on your car insurance, you would have earned that much more money to spend on other things. Yes, your auto insurance coverage is one area where you can make substantial savings – and it takes only a minimum of effort.
If you’re about to buy a new car, this is where you can start on your goal to reduce your car insurance expense. Flashy cars and certain makes and models of vehicles are very attractive to car thieves and as a result, more likely to be stolen. At the same time, drivers of these cars are at higher risk of accidents due to speeding. Consequently auto insurance providers will charge more to cover these vehicles. This advice may have come too late for you; just remember it next time you buy a new car.
Knowing beforehand how much you are likely to spend on car insurance for a certain type of car is a simple strategy to save on your insurance expense later on. Make a short list of cars you’re interested in and ask your insurance broker to give you a quote for each. It’s amazing how much the insurance costs vary between different cars. As a result, you will be able to get the lowest insurance premium if it doesn’t matter which car in the list you will buy.
Do you really need the collision and comprehensive clause in your policy? If you have an older car, the extra expense may not be commensurate to the car’s value if it is damaged in an accident. By canceling this provision, you can save as much as 40% on your insurance premium. Having this extra coverage is justified only if your car is new or has some extrinsic value to you.
Think twice before filing claims if your car is damaged in an accident. Figure out if the repair bill will cost you more than the extra $200 or $300 more in your insurance expense in the years to come. Filing an insurance claim generally results in a higher insurance premium. If you can cover it yourself even with a little difficulty, it will be worth it in the long run.
It’s good to know that with something you absolutely need to have – like auto insurance – you have a degree of control over the cost.