5 Ways to Save Big on Auto Insurance
Saving Money on Car Insurance Is Often Just a Phone Call or Online Search Away
Air bags, anti-lock brakes, daytime running lights and passive restraints will all contribute to lower premiums. Installing an approved anti-theft or vehicle tracking system may also help you qualify for discounts.— Jim Yuhas, insurance operations specialist, AAA Arizona
Carrying auto insurance is required by law in most states. Even if you live in a state where it is not required or you are taking the chance that you won’t be part of a fender bender while driving without it, you bear financial responsibility for damage to your vehicle and those of others if you are found to be at fault in an accident. Being protected, however, doesn’t mean going broke. Here are five ways to help make sure you don’t.
Review Your Policy and Shop Around
If you have a clean driving record or you recently completed a driver safety course, you are likely eligible for discounts, said Jim Yuhas, insurance operations specialist for AAA Arizona in Phoenix.
For example, you may be eligible for a reduced premium if you have not had any tickets or accidents in the last three years. Some carriers also offer discounts for teens who have complete driver education programs.
You’ll never know unless you ask. “It’s important to note that all insurance companies are different, so before investing in something that you believe will help achieve insurance savings, check with your agent to make sure you are actually going to get a discount,” Yuhas said.
Faithfully sticking with your current carrier without looking around may cost you, said Michael Sullivan, director of education for Take Charge America, a national nonprofit credit and debt management agency.
“You should check every three years. Chances are, your premiums have gone up,” Sullivan said. “It’s amazing how many people buy from one company and never look back.”
Sullivan suggested doing an online search of several companies and comparing their least expensive packages, then going with the lowest price. Examine your state’s insurance commissioner’s website for licensed companies.
“As long as they are licensed, they are going to cover you," Sullivan said."What it comes down to is that you want that check when you get into an accident.”
Bundle Your Policies
If your current provider continues to offer the best deal, ask about bundling.
“Combining policies can help consumers achieve tremendous savings," Yuhas said. "AAA generally offers up to a 30 percent discount on home and up to 15 percent savings on their auto policies when combined.”
It may be worth thinking about your individual circumstances and factoring those into your coverage equation. For example, loose gravel and little stones that are kicked up on paved and unpaved surfaces along with the intense summer heat give windshields a shorter lifespan in the desert, Sullivan explained.
“In Arizona, windshields don’t last long," he said, "so you may want to have glass coverage here."
Keep a Clean Driving Record
Handheld email and texting devices, portable media players and satellite radio can be distractions for even careful drivers. Not coming to a complete stop, making an illegal lane change and trying to beat that red traffic light can become costly if witnessed by a law enforcement officer.
“I have personally seen insurance bills that have gone up over $100 a year based on one moving violation," said Sullivan. "It would not be difficult to double your insurance payments with moving violations."
Maintain Good Credit
Insurance companies in most states will check your credit rating, using the score as a reflection of the insured’s character. A consumer who has a history of demonstrating financial responsibility could qualify for a better premium. If your FICO score is shaky, do what you can to clean it up.
“For this reason, it’s important to maintain a good credit rating," Yuhas said. "Or, if your credit has improved since your last policy, be sure that your insurance company is aware before you renew.”
Choose Your Car Wisely
If you are thinking about purchasing a vehicle, insurance cost plays a role in whether you drive off the lot in a brand new model or one that rolled off the production line three years go.
Because rates are primarily based on the value of the automobile, your selection goes a long way toward determining how much you pay. Sullivan advised taking into account the make, model and cost of the vehicles you are considering.
A vehicle’s safety equipment also matter, Yuhas noted. “Air bags, anti-lock brakes, daytime running lights and passive restraints will all contribute to a lower premiums," he said. "Installing an approved anti-theft or vehicle tracking system may also help you qualify for discounts."
Read more: 5 Ways to Save Big on Auto Insurance | eHow.com http://www.ehow.com/feature_12104422_5-ways-save-big-auto-insurance.html#ixzz1pylC2MKF
No comments:
Post a Comment