One of those things in life you simply must have is auto insurance. You must have at least the bare minimum of coverage, according to most state laws. There is no getting around this, so you might as well maximize your insurance experience by using the money-saving advice provided below.
First advice: Take into account the value of your car.
Let’s face it: cars quickly lose value or depreciate. The value of your car suddenly changes from “new” to “used” when you drive it off the dealership lot. Your car’s value will drop dramatically over a short period of time regardless of how well you maintain it.
Find out the estimated book value of your vehicle from your previous lender if you have settled all outstanding debts on it. There is no need to carry collision coverage if this sum is equal to or less than your collision insurance premium. In essence, whether or not you have an accident, you would be paying the full value of your car every year. If this is the case with your vehicle, leaving off the collision coverage will significantly reduce the cost of your auto insurance.
Avoid traffic tickets as number two advice.
The leading factor in high insurance rates is speeding tickets or other moving violations. You are categorized as an “at-risk” driver when you drive at high speeds or disregard traffic laws, and as a result, your insurance rates are increased for a number of years. Your insurance rates will stay low and enjoyable if you drive safely and obey the traffic laws.
Knowledge of Coverages is the third tip.
Depending on your location or the type of car you drive, some coverages might not be necessary. For instance, theft insurance protection might be sage if you reside in a big city where auto theft is common. However, if you live forty miles from the nearest town on a high mountain where theft is very rare, then there’s no need to pay the additional premium for this type of coverage.
There are numerous optional coverages that are still beneficial. Each coverage must be carefully examined before you can determine whether it is necessary or not. Find out the specifics of “full coverage” if your insurance provider offers it. If you don’t need all of the included coverage, it might be less expensive to purchase only a few of the options separately. Your needs, the value of your car, and other factors will determine this.
Auto Insurance Deductibles are the fourth tip.
Although consumers frequently have negative opinions of high deductibles, you can actually benefit from them and save a ton of money on premiums each year if you use them to your advantage. A deductible’s purpose is to shift some of the burden of paying for an accident from the insurance company to the driver. This will result in a significantly lower annual premium.
A $1,000 deductible amount seems extremely high, but if it saves you $200 per year on your insurance premium, it’s well worth it! Keep in mind that the deductible will be due only if you do have an accident where insurance is needed. Otherwise, you get to keep getting the lower premiums every year.
If you select a policy with a high deductible, you might want to put some of your premium savings into an emergency fund, so you’ll have some or most of your deductible if an accident does occur.
Comparing insurance policies is the fifth tip.
Making comparisons before enrolling in insurance is another way to save money. You should contrast insurance providers and prices in addition to policy options.
Note of Caution: If a very low price is being offered, take care not to sign up too quickly. If at all possible, contact some references, or ask around to see if anyone you know has dealt with the business before. Always exercise caution because some businesses that advertise low prices actually have the worst customer service and take forever to process claims.
Comparing California insurance providers using online resources is highly recommended. Online coupons and discounts are another source of additional savings.
Use these straightforward suggestions when selecting an insurance provider and your coverage to lower your premiums while still getting a great plan that meets your needs.