I don’t want to sound like a television or Internet ad. I really don’t. But the fact is that most of us are paying too much for car insurance. Here are some ways that you can reduce that expense.
Reduce the number of cars
The quickest and most dramatic way to reduce your car insurance expenses is to reduce the number of cars that you drive. While this may seem obvious, consider it a way to start really examining whether or not you really need all of the cars that you currently have. Whether it is one car or five, can you reduce the number of them and still work things out?
Cut collision and or comprehensive
We just cut collision insurance on our cars to save hundreds of dollars a year. This works for us because the two cars are 10 and 11 years old respectively. The reality is that if one of the cars get totaled, the amount returned really won’t equal the deductible plus the pay out plus the insurance cost, so it is a risk we are willing to take. Minor dings and dents we could probably live with.
Comprehensive coverage is a little harder to give up, because we live in a wooded area where tree limbs fall and deer tend to jump over cars. A broken windshield or headlight would definitely need to be fixed (in fact we had to replace two windshields last year), and the expense may outweigh the insurance cost. But depending on your circumstances, you may be able to drop this coverage as well.
Bundle your insurance
If you do have more than one car and own a home (or rent an apartment), you may be able to save hundreds of dollars by choosing the same insurance company and bundling all of your insurance needs together. Don’t assume that bundling is always the best deal, which brings us to our next point…
Shop around and review
This is the number two way of saving money on your car insurance (getting rid of the car being number one). Shop around for new rates often, and if you do switch, make sure that there are no fees involved (or ask your new company to cover those fees).
Also review any changing needs. If you have been driving a lot less, you may qualify for a lower rate. The same thing goes for another year with no accidents or claims. Even if you want to stick with your current insurance company, check in with them to see if they can do any better than the rate you currently have.