It’s that time of year again when my car insurance is up for renewal. I wish at the end of the year you get your money back if you didn’t have any claims. The amount of money I have paid in car insurance over the years is just crazy. What really gets me is when they increase your rates even if you haven’t had any claims.
Here are a few tips to reduce your insurance premiums:
1. Shop around – I’ve probably been insured with over 10 companies over the years. Not because my insurance has ever got cancelled or anything. I just don’t mind putting in the work to try to get a cheaper rate. You’ll be surprised how insurance companies can differ in price from one another, even though you may be getting the same coverage, so shop around. I recently discovered Kanetix which is a site that checks the rates of several different insurance companies for you.
2. Combine your house and car insurance – Often insurance companies want you to have more than one insurance with them, so they will offer a discount if you insure your home and car with them.
3. Keep a clean driving record – Speeding tickets, accidents, failure to stop at a stop sign, will cost you more in insurance. Some insurance companies will allow you to have one accident on your record without penalizing you. But not all insurance companies are that nice, so you’ll have to shop around.
4. Choose where you want to live carefully – Insurance companies look at where you live to determine the rate that you’ll pay. Some cities are more expensive to insure than others. If you live in a city where there is a high chance of theft, vandalism, or fraud, you will most likely pay more to insure your vehicle.
5. Liability insurance – If your vehicle is very old, you may not need full coverage. One hint is, if your yearly premium cost more than the value of your car then you probably don’t need full coverage.
6. Be wise in your choice of vehilce – A Mercedes is going to cost more to insure than a Honda, simply because the cost of repairs are drastically different for both cars. Luxury and sports cars cost more to insure. If you are shopping around for a new vehicle. Check out the cost of insurance before you make your purchase. Insurance costs can make a difference in you buying a particular vehicle or not.
7. The purpose of your vehicle – If you use your vehicle for business use, your rate will be higher than if you only use it for personal use. Also, the amount of mileage you put on your vehicle per year can affect your rate. The more you drive, the more likely you are to get into an accident, or obtain a speeding ticket. That makes you a high risk to an insurance company.
8. Increase your deductible – If you don’t mind paying a higher deductible if you have a claim, your insurance premium will be cheaper.
9. Alumni or Professional Organizations – If you are part of an alumni at a University or College that you are attending or previously attended, you may qualify for a discount. The same thing applies to any professional organizations you may belong to. Some companies also offer employee discounts on car insurance.
What are some things you do to reduce your car insurance?