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One of the most crushing aspects of owning a vehicle is the insurance rates. Many people think that there aren’t many ways to get it lowered, whether monthly or yearly paid. The truth is, there are quite a few ways to get it lowered!
Avoid Lapses in Your Policy and/or Coverage
When you allow your policy to lapse, be it because you didn’t own a car for a while or because you drove without coverage for even a few weeks, your rates will go up. People who fail to keep up with their coverage are seen as higher risks, although this isn’t quite fair. But it’s the guidelines the DMV uses and therefore, so should you. You’ll save money and be in favor with the insurance company.
Nowadays, a “classic” car may be designated by a special license plate, and is for cars more than 25 years old (varies by state). If you have an old daily driver along with another vehicle in your family or household, you can attach a classic car to your policy for about $50 per year. The insurance companies reckon that you won’t drive it much. There are no limits on miles you drive in it, so if you have a group policy, you’ll save money overall.
Simply comparing rates can save you a bundle. One reader told us that her policy went down $300 just by calling the agencies and getting quotes. Never underestimate the power of shopping around!
Lean on the Deductible
The higher your deductible, the lower your premiums are. This can bite you in the derriere if you get into an accident, but provided you drive safely and minimize your risk of an accident, you should be fine, and the money you save on your premiums will help to pay that deductible, should you need it.
Older drivers simply get better rates than younger ones. At the age of 25, your rates will go down (provided you haven’t been in accidents nor received tickets for moving violations). They continue to drop as you age, as well.
If you have multiple cars in your household or family, consider putting them all on one policy. You will save money on processing fees, and your rates will come down due to volume. Another way to minimize processing fees is to pay your policy entirely up-front, rather than monthly. You may also receive a discount if you consolidate your home or renters insurance into the same policy or company.
Finally, the best advice is to be thorough. Use Google to find even more ways to lower your insurance premiums. Call agencies. Ask questions. You are the master of your own domain and you shouldn’t pay more than you need to for the protection of your vehicle.