Tips for Saving Money on Car Insurance
There are lots of lists on how to save money on car insurance that at least cover the obvious ways. I haven't seen all these suggestions before so here are my tips on how to maximize your savings on car insurance.
Ways to Save Money on Car Insurance
- Consider getting only liability insurance. Drop collision and comprehensive insurance and instead self insure. Make sure you understand the risk of course -if you drove a $35,000 car then the amount of risk your taking is more than if you are driving a $3,000 car and that risk is factored into your insurance premium.
- If you purchase collison and/or comprehensive insurance get the highest deductible you can afford. Every year review your insurance coverage and raise these deductibles as you can afford to do so until you can remove the coverage all together.
- Seek out no-name insurance companies. No-name companies may offer better prices than State Farm, Allstate, even Geico. I started with Allstate, but quickly switched to Farm Bureau when I found they were consistently cheaper. A few years later I then switched to Erie Insurance when we found them to be consistently cheaper than Farm Bureau. You can check with your state insurance agency to learn more the size of an insurer's business in your state and the complaints against them.
- Take advantage of insurer discounts. All discounts at your insurance company are not always advertised so make sure your challenge your insurance agent to lower your premium regularly.
- Price shop annually with insurance companies. Insurance companies always give you their best price to bring you on as a customer, but have little incentive to keep your premiums the lowest possible over time.
- Combine home and auto policies with the same insurer if its the cheapest option for you. Insurance companies want both your policies and will typically offer a discount to get them.
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