In most states, auto insurance is required in order to own a car. But despite its ubiquity, premiums vary widely depending on the kind of coverage, the amount of coverage, the pricing of individual insurance companies, and the make, model and age of your car. Taking a few minutes to learn about what's covered by your auto insurance - and what isn't - could save you thousands of dollars in the long run.
How to Save Big Bucks on Auto Insurance When it comes to saving money on auto insurance, there are a number of ways to make the best of your insurance policy.
* Shop Around: Compare pricing on similar policies offered by other companies before you buy. Similar policies won't always have similar premiums. Some very reputable insurance firms offer better prices than others.
* Group Discounts: Many insurance companies offer special prices if you can verify that you're a member of an insurable group, such as an employee of a big corporation, an AAA member, or an alumnus of a particular college or university. You can save a lot of money by asking about group prices.
* Home and Car Insurance Packages: It's possible to secure discounts if you buy your home and auto insurance from the same provider. Even if you rent your home, you can roll your auto and renter's contents insurance into one discounted package.
* Change Your Deductible: Auto insurance prices vary with the size of your deductible, so changing your deductible - the amount you'll have to pay out-of-pocket to repair damage to your car before insurance kicks in - can change your premiums. If you change your deductible from $0 to $500, for instance, you might save as much as $40 monthly, or $480 per year.
* Eliminate Collision and Comprehensive Coverage on Old Autos: Collision and comprehensive coverage pay for damage done to your car in an accident, vandalism, or "act of God" - but if your car is old enough to have lost most of its value, insurance may pay you very little even if your car is destroyed. It might be more cost-effective to put aside the amount you would have paid on insurance and save it in case an accident forces you to buy a new car.
* Avoid Filing Claims: Every incident you report, however minor, can raise your insurance premiums. For minor accidents and damage, it may be smarter to pay for repairs yourself to keep premiums low.
* Smart Payment Plans: Some insurance companies charge a fee to collect twelve monthly installments as opposed to one annual payment. This fee may be avoided by allowing insurance to draw money directly from your account, potentially saving you hundreds of dollars annually.
* Keep Policy Information Current: You may not know it, but your policy could still list you at your previous job, where you drove twice as far to work each day - and this kind of information can raise your insurance premiums. Keeping your policy information up to date also guarantees that the insurance company can't refuse to pay because of a technicality related to out of date information in your file.
Use the Internet to help get Affordable Auto Insurance Using the internet for research can be a big help in getting the best deal possible on your auto insurance. There are plenty of websites out there that will get you several free quotes from leading insurers who will compete for your business. Using such a service can help ensure that you get competitive quotes from each company that you speak with. Since the insurance companies know that they are competing for your business they are likely to offer their best deal. Using the power of the internet can be your best strategy in getting affordable auto insurance.
When shopping for auto insurance the bottom line is - educating yourself on insurance choices and shopping around can make all the difference in getting the policy that best meets your needs at the best possible price.
