Four Ways to Lower Your Auto Insurance Premium
There are many variables that determine the cost of your insurance policy, for example the type of car you drive, where you live, and how much coverage you may or may not need. Costs can be considerable and unfortunately with the economic hardships that many Americans are experiencing, auto insurance can be difficult if not impossible to afford. However the Insurance Information Institute has provided some helpful money saving tips that should ease some of the financial woes being faced in the country.Money jar
Do Your Homework Before You Buy a Car
Car insurance premiums are greatly affected by a vehicle’s make and model, how much the car costs to repair, the vehicle’s safety record, and how likely it is that a vehicle will be stolen. Taking some extra time before buying to determine the vehicles with the best likely premiums, can help to save you big bucks.
Additionally, most auto insurer’s will generally offer discounts for features that reduce the risk of personal injury or theft. For example, discounts for installed air bags, anti-lock braking systems, anti-theft devices, and daytime running lights. It’s very important when comparing new and used vehicles to see if these features are included so that you can ensure you receive the best insurance policy rate as possible.
Choose Higher Deductibles: A deductible is the amount of money that you have to pay before your insurance policy covers the rest. By assuming a higher deductible, you may be able to significantly lower coverage costs. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15% to 30%. You could save even more money should you choose an even higher deductible. However, by selecting a higher deductible your out-of-pocket costs increase significantly should you be involved in a serious accident. In short, you would have to pay that higher deductible amount out of pocket before your insurance policy kicks in. Make sure you choose the right deductible for your specific economic situation.
Lower Your Coverage on Older Cars: Keeping comprehensive and collision coverage on low-value vehicles may not make sense because the insurance costs could exceed any amount you could expect to receive back from a claim. Check your state’s auto liability requirements before dropping any coverage since auto liability requirements vary from state to state. USAA provides a free used vehicle calculator that can help determine the value of your current automobile and how much coverage you should be purchasing for it.
Take Advantage of Other Discounts: Many insurers provide discounts to customers who purchase more than one policy. You might also qualify for further discounts if you remain accident-free and have recently taken defensive driving courses.
As you can see, there are many factors to consider when figuring out what type and how much insurance to purchase. The above tips are a really great way to get started on making your decisions, but there are many more factors to consider when purchasing the right insurance for your specific needs. If you would like further information, we encourage you to order our FREE book, the Consumer’s Awareness Guide to Buying Car Insurance in Georgia which covers what you need to know about making an informed decision when purchasing auto insurance. It even covers secrets that insurance adjusters don’t want you to know! The most important thing about car insurance is making sure that you’re covered in case of car accident emergencies. Be sure you have all the right information, because you cannot afford to be ill prepared.
Ty Wilson is a Savannah accident attorney. Visit tywilsonlaw.com for many helpful articles, videos and to order his FREE books before you talk to the insurance adjuster, sign any forms, or even hire a lawyer. If you have questions today, give him a call at 1-866-937-5454.
Be informed. Be aware. Be prepared.