AUTO INSURANCE
This is often overlooked when searching for a new or used car. This can have a serious impact on monthly expenses if it is not taken in to consideration. I have seen numerous instances where a customer had to cancel a deal, because the insurance turned out to be much more than expected. I strongly suggest getting quotes on the vehicles you are looking at to avoid any surprises after you have closed a deal on a particular car or truck. It is hard to believe, but many times rates can vary substantially for similar year vehicles from different manufacturers. There are several factors such as driving record, past claims history, marital status, garaging address, type of vehicle, age, credit score, vehicle use, type and level of coverage, licensed household drivers, etc. These can all have an impact on your premiums. I recommend shopping at least once a year to be sure you are getting most competitive rates for the coverages selected.
TIPS FOR SAVING ON YOUR AUTO INSURANCE
- Shop the rates-It is no secret that auto insurance has become very competitive, and you need make sure you are taking full advantage of it. As I mentioned in the previous paragraph, take the time to shop around when your policy is up for renewal. You may be surprised to find out that you can save a significant amount of money, by switching your insurance company. It does not cost anything, and it is very easy to do from the comfort or your home by requesting online quotes. It is important that you request identical coverages from each insurance company for accurate quotes.
- Choose a higher deductible-The savings of choosing a high deductible can be significant enough to warrant the risk associated with it. Ask for a quote with deductible choices, and choose according to your comfort level of risk involved. If you are a very safe driver with a great driving record, then you can feel good that the odds are on your side that nothing will happen, and you can enjoy the savings up front.
- Consider economies of scale-I am referring to carrying all of your insurance with one insurance company. Many large insurance companies offer many other types of insurance in addition to auto insurance, such as homeowners and life insurance. These are referred to as multi-policy discounts, or umbrella policies. The insurance company is willing to offer greater savings in most cases, because you are carrying more policies with them which increases their revenue stream. This can translate in to savings in your pocket, and get you the coverages you need.
- Safe driving habits-This may sound like a no brainer, but this can translate to hefty savings. A driver with a clean driving record(no citations), and no prior claims history will enjoy the most savings of anyone. Insurance companies look at this very closely, and adjust their rates according to their risk exposure. The higher the risk, the higher your premium will be.
- Maintain a good credit standing-This is something that most people do not know. Many insurance companies take your credit score in to account when pricing your policies. It is my understanding that they have studied the habits of people who manage their credit well. What they found is that people who pay their bills on time have a lower incidence of claims. This means that people who do not run the risk of paying more for their auto insurance.