Car Insurance Tips To Help You Save Money

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Car Insurance Tips To Use When Shopping For Your Next Policy

These car insurance tips will help you figure out what you may be eligible for when it comes to getting more insurance for your car without overspending. Plus getting as many perks as you possibly can all at the same time. 

Having a car doesn’t mean that car insurance should leave you broke.  Choosing the car insurance company you go through is going to be very important. Each insurance company is going to be different, so be sure to fully research which one fits your needs the most.  

Increase Your Savings Portfolio By Taking Advantage Of Any Car Insurance Breaks You Qualify For

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Photo Credit: Fantasista : Free Digital Photos

I see many people wonder how they can even start an emergency fund savings, especially if they are living paycheck to paycheck. One of the ways to start it is when you are shopping around and buying your car insurance policy. For example, you call and get the basic initial quote and they say $1,200 for the year. After getting all your discounts and everything squared away and you also pay in full, now your final car insurance payment is only $800!

Car Insurance Tips 1: Use that money saved and use it to start a savings fund. 

That $400 may not seem like a lot, but it really is. You can get your emergency fund started with that whole $400, which will motivate you further to find other ways to add to your emergency fund. 

Some things to consider when choosing a company are their reputation, customer service, how claims are filed and probably more importantly fulfilled; I learned that the hard way.

Car Insurance Tips 2: Research the company thoroughly, get reviews and ask around.  Be sure to ask for examples to see if it is something that you are 10% comfortable with. 

Learn about the various ways you can go through to save money as well. The way you drive, your credit score, memberships with credit cards and discount memberships as well. I got the opportunity to grab some money saving valuable tips from multiple experts to help you sort through the mess of obtaining the right car insurance for your needs and budget. 

Please do make sure to visit each ones site listed in the pink boxes and send them a Thank You for contributing some helpful tips for us in our quest to save money. 

Natasha Rachel Smith

Usage Based Savings

Usage-based programs fit your car with a telematic device to monitor your driving. If your driving habits are considered 'low risk', for instance, you have a clean record, abide by speed limits, don't brake hard and tend to drive during the day, then your premiums could be significantly lower than those with traditional insurance companies. If you have an older car that doesn’t hold any value, you can opt out of comprehensive and collision coverage to save $200-$300 a year.

Deductible Savings

Low deductibles on your collision and comprehensive coverage can raise your policy’s cost by hundreds of dollars. Increase your deductibles by $250 to $1,000; you’ll typically save between 25 and 40 percent on your policy. Set aside the savings you’ve made to off-set the event of a claim.

 

 

Things To Consider To Get Lower Car Insurance Rates

Type Of Driver You Are: There are different rules, requirements, regulations, and ways to help you save money and other issues in case of an accident. You must fully disclose the type of driver you are, such as commercial, if you will use your vehicle for any type of work including those who use their vehicle to transport products to an event or clients home. 

Dan

Your Place Of Employment and Location Matters

Your job affects your car insurance rates. The work you do, the length of your commute, and where you park your all affect your premium. When you change jobs, then, shop for new insurance. You might find something cheaper.

If you are a home-based business owner, direct sales rep or party plan consultant going to do an event or party inside potential customers home, you would need to check your state’s laws and plan accordingly. If your state considers that type of driving to be commercial and your car not registered as a commercial car, they are not obligated at all to cover your car in the cases of vandalism, car accident or any type of damages. And please do not try to “beat the system” this hurts you and others in the long run. 

Matt Boyden

Length Of Time With Car Insurance

When shopping for quotes, many companies give discounts for how long you've been with your current company. If you haven't shopped around in 2-3+ years, you're very likely going to find a lower rate with another company.

Also please ask your insurance agent about having anything about your business on the car and what it means as far as coverage. In some states, if you have those vinyl signs, car wraps or magnets with your companies information, you are then saying your car is used for business purposes, which could mean that you would need to register and insure your car as commercial, 

Erin O’Reilly

Replace New Tires

In the unfortunate event that a driver experiences an incident while traveling, drivers will want to save as much money as possible in replacing/fixing their vehicle parts. Part of being involved in an automobile accident is purchasing new tires, which can be a costly expense. You often find better-priced tires when you shop with online retailers such as Simple Tire.

Using your car for any commercial purposes without the proper coverage can mean lots of lost money down the road and increased premiums for you in the future. You would be considered as uninsured or underinsured leaving room for someone to sue you. 

Neil Richardson, licensed insurance agent

Full Coverage Benefits

Buying the minimum level of auto insurance coverage may work for some folks in unique circumstances, but for others, it’s simply too little financial protection to cover a number of common car insurance claims scenarios. People end up with huge bills because they wanted to save a few dollars off their premium.
 
Each state regulates insurance independently, so they each have specific minimum requirements for liability coverage, which covers the other driver in a collision, including injury or property damage you might cause them. For example, in California, the state minimum liability coverage is 15/30/5, which means $15,000 of bodily injury coverage per person, $30,000 maximum bodily injury coverage per accident, and $5,000 coverage for property damage caused by your vehicle. So if you were to cause more than $5,000 worth of property damage in a California collision (which is not hard to do considering damage to other vehicles, in-car possessions, or the surrounding environment), you would be on the hook for any amount beyond the $5,000. 
 
Uninsured/underinsured motorist coverage should also be a major consideration for all drivers. Though it’s legally required only in some states, an average of one in seven drivers in the U.S. is uninsured, so drivers are taking a huge risk if they forgo this type of coverage. Alabama, for example, where an even greater percentage of drivers is uninsured (20%), does not require uninsured/underinsured motorist coverage. If your car were to get hit by an uninsured driver there, your state minimum liability coverage would essentially protect nothing of yours — not even you. If you are injured, you pay for your medical bills out of pocket (since Alabama also does not require personal injury protection - or PIP insurance), and you pay any damage to your car as well. 
 
Further, with state minimum insurance coverage, you don’t get collision or comprehensive coverage. (Collision protects your car in a crash with another vehicle or even a stationary object, and comprehensive protects your vehicle from non-crash damage such as from weather, theft or fire.) Say you live in Missouri, where 14 percent of drivers are uninsured — the state minimum coverage there actually does include uninsured motorist coverage for bodily injury, but not property damage. So in that case, you would need collision coverage to pay for any claims on damage to your vehicle from one of the many uninsured drivers on the roads.
 
Very long and complex story short, following the “bare bones” rule really raises more questions than answers for drivers. All consumers should consider their own needs and compare car insurance coverage options and quotes to ensure they are properly financially prepared to drive.

 

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If you are using your own vehicle to deliver things like pizza, groceries or similar, basically as a delivery of goods driver, please do check with both your states laws and your car insurance company to make sure you are fully covered in any type of event such as theft, accident, including moving or parking violations etc. 

Some memberships help you lower your car insurance rates. Such as being an AAA member, AARP member, military, student or even through certain jobs, check with the company you work for. 

Mary Grace,

Car Insurance Doesn't Have To Be Expensive

Yes, car insurance is expensive. But, there's a lot that can be done to save money that you may not even realize. Take a defensive driving course -- you'll save 10% on your comprehensive and collision premiums, at least in New York. Check the rules with other states, but their discounts are similar. Raise your deductibles -- bet on you, rather than on the possibility that you'll have an accident. If you have a young driver in your household, and that young driver is a good student, your insurance company may offer a good student discount. Also, check to see if any professional associations that you belong to qualify for a discount. 

 

Amount Of Miles Driven: Some car insurance rates can be lowered if you drive a limited amount of miles per year. Such as a driver who uses a specific car just for driving to their place of work or where they go to school. 

Alex Pfeifer

Low Miles and Driving Habits

Car Insurance can be discounted up to 60 percent if you drive low miles and the low mileage is verifiable. Car insurance companies elect one of two ways to verify your driving habits. If you know how the company will verify the odometer reading, you can use that knowledge to your advantage. Method 1) The Insurance Company will order a Carfax report which will show odometer readings from your last few car services (oil changes, new tires, smog checks, etc. . .). If you know that car has not been driven much in the last couple of years but it soon will be (perhaps because you are adding a new driver or are selling another car), then you should shop for new car insurance right away, while the driving history still shows the vehicle is not used often. Method 2) They will ask you to install a mileage tracking device in your vehicle and collect six months of data. Pick a time of year when you won't be driving much when purchasing your insurance and you'll save on your premium in the long run. A knowledgeable insurance broker will be able to direct you to the right insurance company if you let him/her know about changes or plans to change your driving habits.

For example staying under one hundred thousand miles per year can save you $100 – $200 per year! If your car is only used to get from home to work or school only, you may not rack up those miles like someone else would, and you can possibly get a discount for it. 

Sarah Hollenbeck, Personal Finance Expert

Understand How Deductibles Work

While this might not seem like a money-saving tip, higher deductibles mean lower premiums. So, if you are a generally safe driver, this option might help you save money in the long run. Just make sure you have enough saved to pay the higher fees if an accident were to happen, and remember, you can also go back and change your deductible even after you’ve made payments! 

Number Of People In Household Or On Policy: This is also important and can factor into how much you are paying out. For example, having both spouses on the car insurance policy or having multiple adults and teens with drivers licenses in the home. 

Registered Cars Location: Where you live will also determine how much you pay too. I remember having a Mercedes and my car insurance was instantly lowered when it came time for renewal all because of where I moved to, which lowered my car insurance rates by at least $200!

Tom Bartsch

Where You Live Matters

When applicable, one way to save money on car insurance is to move. Sound harsh? Well, where your vehicle is garaged plays a large role in insurance rates. Those located in high-density areas will pay more for car insurance than those who live in less populated areas.
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Free Resource: Safe driving leads to better insurance rates. Start young by following these safe driver tips for teens. Teen Driver Tips
dailryland auto insurance

Type Of Car Driven: Did you know that if you have a hybrid or electric car you may possibly be eligible for a discount? Yes, it is true in some states. Ask your car insurance agent about any possible discounts for the type of car you have.

Bundling and Package Deals: Bundle your insurance policies some companies offer home and auto bundles that allow you to save money by having both types of coverage on with the same company on the same policy even if you don’t own your own home you may be able to take advantage of bundling if you have a boat motorcycle or if you pay for renters insurance where you live the type of car you drive your deductible and even your credit score will affect your rates so shop around and ask lots of questions to find more ways to save more on your car insurance.

Jennifer McDermott

Car Choice and Bundle Packages Will Help

Make insurance part of your car purchase decision: The car you drive can significantly impact how expensive your auto insurance will be. Keep this in mind when looking for a car, with things such as safety features, make, model and age all contributors to hiking costs up or driving down.

 

Package discount: If the insurance company you are considering also offers policies that you require on top of auto, you could consider getting all of your insurance through them and negotiating a package discount. Many companies offer a form of the group discount, including for when you are insuring for two cars instead of just one.

Paying For The Right Car Insurance

Shopping around, comparing every single option available to you, can either cost or save you money. You want to save as much money as possible, and all without sacrificing quality or leaving yourself paying more later on. You may live in a different state than I do, and I am sure your situation is different from mine. Make sure that the car insurance policy you get matches your needs as much as possible. You do not want to short change yourself because of your friend, family member or neighbor pays less and you see what they told you as the right car insurance tips for you. 

A Few Car Insurance Tips I Will Always Use

  1. Get Full Coverage
  2. Be A Proactive And Safe Driver
  3. Take Advantage Of All Discounts Possible
  4. Get Personal Injury Protection (PIP)
  5. Get Roadside Assistance
  6. Pay In Full

I did all 5 of these car insurance tips and it is exactly what saved me when I was in that no-fault car accident in 2012! I did still have some losses but if I hadn’t taken advantage of those things it would have been worse.

Lastly from Joel, 

Joel Ohman, Certified Personal Finance Planner

Overall Things To Consider

Credit Score: It is certainly controversial, but almost every insurance company in the US factors an individual's credit score into the rate they will pay for auto insurance. Technically, the insurance company may not necessarily pull a credit score or credit report, but they will use some type of insurance score that is based on one's credit score. Generally speaking, the better your credit score, the better your car insurance rate. Risky Drivers: Certain auto insurance companies specialize in higher risk drivers. This means that if one has a DUI in their history, many accidents, or even poor credit, then it becomes all the more important to shop around and compare rates from many different car insurance companies. Employee Discounts: One type of insurance discount that many people never even think about can come from an employer. Many large Fortune 500 companies offer various discounts to their employees if they purchase a policy through a preferred insurance provider that the employer may have some type of special arrangement with. Often employees don't even think to check with their employer or they forget to bring it up to the insurer. Pay In Full: Some companies offer discounts for prepaying upfront in a lump sum or even for agreeing to only receive online statements. These discounts aren't that large so they are not always advertised - often you just have to ask to start saving some money! Livery Drivers: It's quite common for Uber drivers to think that they can just hide their status as an Uber driver from their auto insurance carrier. This certainly might work for a while, but should they ever find themselves needing to file a claim then their insurance carrier may very well well choose to deny their claim and even rescind their policy because of their lack of forthrightness.  Some auto insurance carriers are beginning to offer a "Ridesharing Endorsement" to their personal auto insurance policies, designed specifically for Uber and Lyft drivers. This is in a very limited roll out with State Farm, Farmers, and USAA. Lyft and Uber drivers should do all they can to get and keep adequate coverage so that they will not find themselves without protection should they ever need to file a claim. Teen Drivers: When adding a new teenage driver to a policy it's smart to compare the rate that your current provider is offering you to the rates that other companies will offer your new cadre of drivers. Some companies go out of their way to price families with teenage drivers very affordable, even including things like discounts for good grades, while other companies are not at all interested in extending low-priced coverage to new drivers so it can pay off handsomely to shop around when insuring a new teenage driver.

What Are You Doing With The Money You Save On Your Car Insurance?

One of the things I recommend for people to do with the money saved is to actually Save That Money! It isn’t free money, it is still your hard earned money. It is always what you do with that saved money that matters. For my family, we are taking half the money and investing it to work for us and the other half we are going to add to our emergency funds. Be sure that you have printed your Money Savings Challenge so that you can challenge yourself to track, save and build your personal savings portfolio.

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