How can I reduce my car insurance rate?
Tip : Consider Your Current Vehicle’s Value
Let’s face it, cars depreciate (or lose value) rapidly. When you drive your car away from the lot brand new, the “new” suddenly changes to “used” value. No matter how well you maintain your car, the value will decrease staggeringly over a very short period of time.
If you have paid off your vehicle, you should find out from your previous lender the estimated book value. If this amount is equal to, the same or less than what the “collision insurance premium” costs, then there is no reason to carry this added expense. Basically you are paying the total value of your car each year, whether you have an accident or not. You will save a huge amount on your auto insurance premium by removing this option.
Tip: Avoid Traffic Tickets – start driving your age!
Speeding tickets and other moving violations are the single cause of higher insurance rates. Reckless driving at high speeds or disregarding traffic rules, you are considered a “high risk” driver. Your insurance rates are elevated for several years as a result of this driving behavior. Driving safely and abiding by the rules of the road will reduce your insurance rates.
Tip: Know Your Coverages
Some insurance coverages may not be necessary, depending on where you live and the type of vehicle insured. An example would be, if you live in a metropolitan city where car theft is common place, then theft insurance coverage would probably be wise. However, if you live a long distance from the nearest town where car theft is very rare, then there’s probably no need to pay the additional expense for this type of coverage.
Some coverages are optional, but still helpful. You’ll need to carefully canvas each coverage to determine if it’s needed or not. If your insurance agent offers “full coverage”, find out precisely what is included in the price. It could be less expensive to pay for only a few of the options on an individual basis if all of the included coverage is not needed. This will depend on your needs, car value, etc.
Tip: Car Insurance Deductibles
Tho’ high deductibles ofttimes get a negative reaction from consumers, they can actually work to your advantage and save you tons of premium money yearly. The concept behind the deductible amount is to place more of the responsibility on you, the driver and less on the insurance company. Successively, your premium can be substantially less each year.
A $1,000 deductible amount seems excessive, but could save you $200 per year on your premium! Remember that the deductible will be due only if you do have an accident where your insurance is needed. .
If you select a policy with a higher deductible, 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.
Tip: Insurance Comparisons
One way to save money is to compare rates online before signing on for insurance. You will not only want to compare policy options, but also insurance companies and pricing.
Caution: Don’t sign up too quickly even if a very low price is being offered. Get some references if possible, or maybe ask around your work or family to find out if someone else has had experience with the company. Some companies who boast low prices offer terrible customer service, and take a very long time to process claims.
Utilizing online resources is a great way to compare California insurance companies. You might also find discount offers online which provide additional savings.