Tips for keeping insurance low
1. Shop around and research your insurance options. Rates can vary considerably among insurers.
2. Avoid traffic tickets. The best way to avoid auto insurance increases due to traffic tickets is to avoid receiving a traffic ticket. Drive safe and follow the rules of the road. Be courteous if you are pulled over-maybe you’ll just get a warning.
3. Fight traffic tickets. If you receive a traffic ticket, fight it. You are “not guilty” until proven otherwise. Prior to a conviction, your insurance company has no idea you received a traffic ticket. Do your research and consult with a traffic ticket lawyer early in the process to increase your chances of avoiding a conviction.
4. Attend traffic school. Different states have different options but almost all are meant to reduce driver license points and automobile insurance rates.
5. Increase your deductible. For many people, raising the deductible on their auto insurance is a good way to cut the overall cost of the policy. Perhaps a mere increase from $250 to $500 can reduce your annual premium by 10 percent or more. Just make sure you can handle the larger deductible should the time come.
6. Narrow the scope of your coverage. Some coverage is mandatory; some optional. Be careful, though, of leaving yourself underinsured. Just because a type of coverage is optional doesn’t mean it’s not advisable to get it. There’s no requirement for anyone to carry life insurance yet it’s still a good idea…
7. Keep an eye on your credit report. Good credit is potentially important. Keep your credit in order and you are likely to enjoy lower auto insurance rates.
8. Buy a low-profile car. It’s about risk. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and because statistically, the people who own them tend to drive more aggressively. Owners of a Ferrari will likely pay a higher premium than owners of a Volvo station wagon or other low-risk vehicle.
9. Keep your car in a garage. Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction.
10. Install safety and anti-theft devices. You may receive discounts on your insurance if your car is equipped with one or more of the following options: anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., Lojack) may also get you a discount because they reduce the chances of your car being stolen or vandalized.
11. Inquire about discounts. You may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner’s). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company. Good student discounts may even be available for college students who maintain a certain grade point average.
12. Automatic debit. This is when you authorize the insurance company to take your payment out of your checking account at the same time each month. This can save a little money each month.
13. Lower insurance coverage on your older car. As your car ages, it is worth much less than when it was new. Look up the Kelley’s Blue Book value of your car. That is the maximum amount your insurance company will pay if the car is “totaled.” You should review the collision and comprehensive coverages of your policy each year as your car gets older and decide whether it makes sense to continue paying for that coverage.
14. Other drivers on your policy. Don’t include other drivers under your car insurance unless you have to, especially younger drivers or those with poor driving records as they’ll only bring up your rates. Conversely, if you are a young driver, having an adult under the insurance can help lower your rates.
