Even after you slide that final car payment in the mailbox, you may dish out thousands of dollars in auto insurance premiums.
Car insurance is an onus that never seems to die. Like it or not, you need it, you probably want it, and in most states, you gotta have it. Fortunately, you can reap massive savings within months by making a few quick adjustments to your auto insurance policy.
Here are three simple ways to trim car insurance premiums in a flash.
Recently, I took my own advice and discovered I could pocket an extra $190 a year by switching auto insurers. Several factors affect rates; your age, marital status, zip code, driving record, occupation, and credit score are just a few. Life is an ever-changing adventure, which is why you should periodically look for a better deal on auto insurance.
Cancel unnecessary coverage
Liability protection kicks in when your automobile damages someone’s property. Most agree it’s a benefit worth having. However, not all insurance coverage is valuable.
Comprehensive and collision: Comprehensive coverage pays for damage caused by anything from a hailstorm to a fallen tree to a violent showdown with an ex-wife’s baseball bat. Collision pays for repairs after your car collides (get it?) with another vehicle or a motionless object.
If you can’t afford to replace your car in the event it’s destroyed during an accident, hold onto comprehensive and collision. Keep in mind, dropping comprehensive and collision coverage usually isn’t an option for those who are leasing their car or making payments on an auto loan.
Rental Reimbursement: Of course, a rental car adds convenience to your life if your vehicle must undergo days of repair. But can you, at least temporarily, satisfy your transportation needs by walking, carpooling, or relying on public transit?
Medical Payments: Traditional health insurance generally covers medical costs if you’re injured in a car wreck. With that said, it’s possible a crappy health insurance policy will leave you on the hook for huge medical related expenses. So, evaluate whether this extra benefit is worth the cost.
Roadside Assistance: If you’re a AAA or other motor club member, you’re already covered for emergency roadside assistance. Also, many credit card issuers offer this benefit as a free perk to their customers. Plus, you may have received roadside assistance through the warranty on your new or certified pre-owned vehicle.
Take Advantage of Hidden Discounts
Call you insurer or visit their website to uncover discounts you’re missing out on.
You may be able to shave a significant chunk off your premiums if you . . .
- Set up automatic, electronic payments on your account
- Earn a “B” average or higher if you or your child is a full-time student under 25 years old
- Belong to a professional organization, alumni association, credit union, or other organization
- Drive less than 12,000 miles per year
- Pass a defensive driving course
- Pay your 6-month premium in full