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3 Quick and Easy Tips to Shrink Car Insurance Costs

by Shawanda Greene

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.

Shop Around

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.

Let FindMyPerfectRates.com help you find low-cost, dependable car insurance in minutes!

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

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{ 5 comments… read them below or add one }

femmefrugality September 7, 2012 at 5:52 PM

I’m paranoid and get suckered into those extra coverages. :( But I have taken advantage of a lot of those discounts!
femmefrugality recently posted..How to be RADical in 2012My Profile

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chris September 15, 2012 at 2:56 AM

The car you own should be loved by you. One of the things that you should do is to research more about your car.
chris recently posted..Hello world!My Profile

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Jennifer G September 16, 2012 at 9:03 AM

I would love to change insurance coverage. However. My cousin just had the freakiest thing happen. He was in Tennessee visiting his sister and they had a huge storm and his truck was struck by lightening, FRYING EVERYTHING. If he had not have comprehensive insurance coverage, it would have cost him $7000 to repair his truck. But because he had comprehensive, it only cost him his $500 deductible.

And a few years ago, my husband was involved in an accident, caused by a trucker who fled the scene. My husband unfortunately was at the tail end of the wreck, the roads were slick, his brakes locked up and there were concrete barriers on either side of him, so he had no choice but to just slide right into the lady in front of him. We had dropped to liability only on that car. It was totaled, but because we only had liability, our insurance would not pay to replace it, and since the cause of the wreck had fled the scene, we had no recourse through his insurance company. Sadly, it only cost us about $10 more a month to have our new car with full coverage, but we had added a car payment on top of that. So in our case that $120 a year savings definitely was not worth the cost.

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jeep wranglercherokee September 17, 2012 at 1:11 PM

These comments are really helpful.. I found a lot of useful tips from this post

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Kelly@FinancialFixers October 24, 2012 at 10:19 AM

Very interesting, I need to take a look at my insurance policy. My insurance is almost $100 higher living here in Tampa, than my sister’s is in Boston. There are absolutely terrible drivers on the road here, but about $300 a month is absurd, especially when I’ve never been in an accident!
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