It can be easier than you think to save money on your car insurance policy. There are several steps you can take to start saving right away. Using an Independent Agent is helpful in shedding unnecessary costs on your policy. Your agent can advise you on proper coverages and shop the rates among many companies. The difference between one company and the next can literally be hundreds of dollars.
Consider dropping the physical damage coverage on an older car. Depending on your car?s age and where you live, comprehensive and collision coverage may not be worth keeping. You can speak with your agent about this and they can help you research your car?s value to determine the value of the coverage. If you do not want to drop the coverage, raise the deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15% to 30%. In addition, because the average driver files a collision claim only once every ten years, odds are that over the lifetime of your car, a higher deductible will save you money.
Look for discounts. Many insurance companies offer discounts for adding multiple policies. For example, if you add a homeowner?s, umbrella, ATV, or other type of policy, you could save anywhere from 5% to 20% on your car insurance. Companies also offer discounts for certain driver traits or car features. For example, being a homeowner, a good student, a senior citizen who has taken an approved defensive driving course, a car with antitheft devices and antilock brakes, air bags, etc. All of these factors may lower your rate. Your agent will know what discounts apply to your situation.
Do not assume having your car and home insured by the same company is always the best option. It may be, but it is not absolute. Because auto insurance rates vary so much from company to company, it may make sense for you to have your car and home insured by separate companies. Talk about it with an Independent Insurance Agent.