10 Ways to Save On Your Car Insurance

Did you know that you can save a significant amount of money on your car insurance with just a few simple steps? All of the ideas below are easy to plan and implement, and some can be accomplished without even leaving your home.

(1) Decide if Higher Deductibles are Right For You

Most types of insurance have deductibles, and deductibles have a major effect on the overall cost of your insurance. The deductible is the amount that you pay before the rest of the damage is paid by your insurance company. When you choose a lower deductible (i.e., you take on less risk), the more expensive your insurance will be. If you can afford a higher deductible (i.e., you take on more risk, you pay more), the cost of your insurance will go down. One option you have is to raise your deductibles to lower the cost of your insurance. Talk to your insurance agent to see if increasing your deductibles is right for you.

(2) The Payment Method You Choose Does Make a Difference

Many insurance companies offer different payment plans for their insurance policies. Optimize your savings by paying more than a month at a time. Harper Insurance recommends you choose an annual or semi-annual plan that can save you hundreds on your premium. You can also save a considerable amount of money if you are willing to go on some type of automatic payment plan, whether it’s monthly, bi-annually, or yearly. This will save the insurance company and you a considerable amount of time in processing your payments (through the mail) and keeps trees from getting cut down from all the paper billing that will be required.

(3) Multi-policy Discounts

Lower your auto insurance premium by combining it with a home or renters insurance policy with the same company, and in some cases the same agent. This will almost always save you money on both policies.

(4) Safe Driver Discounts

When you have proven yourself to be a safe driver -- many companies will reward you with lower rates. Harper Insurance recommends that you check around to be sure that you are getting all of the safe driver discounts that you are eligible for. Sometimes even the best of us get tickets or wind up getting into an accident. Do not be unduly punished; check around as there are companies that give you better rates even if you have a speeding ticket or an accident on your record.

(5) Safe Car Discounts

Some companies give added discounts for cars with certain safety devices installed on them. If your car comes standard with air bags or anti-theft devices you may be entitled to better car insurance rates. Smaller cars also usually get better insurance rates than larger cars and SUVs, so check with your insurance agent before you buy a new car or truck to see what type of insurance rates you are about to get yourself into.

(6) Unnecessary Coverages

Don’t pay twice for coverage you only need once. Many car clubs offer towing and roadside assistance. Check your policy and drop towing if you already are covered by another plan. Also check with your insurance agent to help you decide if you should have collision coverage and comprehensive coverage on your insurance policy (both are optional). As cars get older it just might make sense for you to drop these coverages – which will lower your rates considerably.

(7) Good Student and Non-Resident Student Discounts

Students who have good grades and/or participate in driver’s education classes may qualify for lower insurance rates than those who do not. You also might be able to save on your car insurance if one or more of your children are away from home as they go to college.

(8) Don’t Let Your Insurance Lapse

Many people in tough times will let their insurance lapse (stop) for a time with high hopes of starting it up again as soon they get paid. This can cause your insurance rates to increase dramatically when you start back up. Driving without insurance is considered risky business, and insurance companies use risk as the primary basis for determining your rates. If you should let your insurance lapse for even 1 month it will put you into a higher risk category, which will cause your rates to go up due to being a higher risk. It might be better to turn off some of the coverages on your policy (e.g., turn off comprehensive coverage) than let your insurance lapse, that way you won’t be put into a higher risk category.

(9) Senior Driver Discounts

At the other end of the age spectrum, senior citizens with a good driving record and those who take a defensive driver class can qualify for significant discounts on their car insurance. Be sure to talk with your insurance agent about these discounts; don’t miss out on discounts that you or your other family members may be eligible for.

(10) Review Your Policy Annually

As the years go by -- things change. That is why Harper Insurance suggests that you review your various insurance policies and coverages with your insurance agent at least yearly to see if changes will affect your rates. For instance, if a teenager moves out of the home, or if someone turns 55, there can be significant reductions in your car insurance. Don’t miss out on these opportunities to save considerable $$ on your insurance.