With the gift-giving holidays behind us, people may now be looking for ways to save, making this the perfect time of year to learn a few tips on how you can save money on auto insurance.
The major ways to save money on car insurance include a multi-car discount and a combination discount, which would include the insured’s car(s) plus homeowner’s or renter’s insurance.
Here are some other ways:
Increase your deductibles. If your deductible is low ($200-$250), ask an agent to show you the difference in price if it’s raised to $500 or $1,000.
If your car is older and the loan is paid off, consider dropping collision and/or comprehensive coverage. The general rule of thumb is if the car is worth less than ten times the premium, consider dropping it.
Take advantage of low mileage discounts. The discounted mileage varies by carrier. Some give discounts at 6,000 annual miles driven and others at 10,000 miles driven.
It is also a good idea when shopping for a new car to compare the insurance rates of the various cars being considered. You should also check rates of different models of the same car. Insurance rates can vary quite a bit depending upon the engine size and whether or not a particular vehicle is considered a sport vehicle.
Other discounts to keep an eye on include anti-theft devices, student drivers with good grades, college students who go away to school, and a good credit score. Above all else, be a good driver. The lack of tickets or accidents will save thousands of dollars.
Source: BMCC Insurance