With the recession crippling the buying power of consumers, insurance companies have been offering competitive packages. Statistics now show that the average cost of auto-insurance is lower today than they were the same time last year.
Even if there are more favorable offers, it’s still very important to spend wisely on your auto insurance. After all, if you want to maximize your savings, you wouldn’t want to spend more than you should on auto insurance. Here are some tips to reduce the cost of your insurance:
Request for higher deductibles – The deductible is what consumers pay before the insurance company begins paying for the loss. People who pay higher deductibles are seen as a lower risk for the company. Therefore, paying more for your deductibles can actually lower the total cost of your collision or comprehensive coverage. On average, people who increase their deductibles from $200 to $500 can lower their comprehensive coverage from 15% to 30%.
Get only the coverage you need – It’s highly unlikely for older cars with lower market values to exceed the cost of insurance and your deductible amount in the event of an accident. Hence, getting collision or comprehensive coverage for these cars won’t really do you any favors except inflate the cost of your auto-insurance. Know your car’s market value. Find out if you can simply drop collision and comprehensive coverage to lower your expense.
In addition, if you already have good medical coverage such as health, life and disability insurance, you won’t need to get more than the minimum personal injury protection required by the state for your auto-insurance. If you do, you’ll only be duplicating your expenses on medical coverage.
Combine Policies with one company you trust – Insurance companies usually give discounts if you insure all your vehicles on one policy. Moreover, you may also get lower premiums if you get auto-insurance from the same company that provides your homeowner’s or life insurance.
Know the factors that lower auto-insurance – Remember that your driving record is always taken into account when calculating your insurance rates. Do have a clean driving record if you want to get the best auto insurance rates available to you. Consider carpooling from time to time to lower your mileage, since some companies offer low-mileage discounts. Owning a low-profile and reliable car does help your cause. A car that is a common target for thieves or is expensive to maintain always attracts the higher premiums. Spare yourself the extra cost by going for practicality rather than prestige.
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