Creative Ways to Lower Your Car Insurance Costs

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When looking to lower your car insurance costs, many people rely on the most common advice to just raise their deductible and keep a safe driving record to get lower premiums.  However, there are some other creative ways to lower your car insurance costs you might not have thought of:

Are you Eligible for a Group Policy?

Some insurers offer rates to members of certain organizations or employees of certain businesses.  Look at professional organizations you are a member of and see if they offer a group policy that is more affordable than your current policy.  Also, call your current agent and ask him or her if you are eligible for a group discount. 

Do You Have Duplicate Coverage?

Do you have health insurance coverage on your car insurance policy?  If you also have health insurance coverage through your employer, you might have duplicate coverage for injuries in an accident.  Some car insurance companies will give you a discount if you work with them to coordinate your car insurance coverage with your health insurance coverage so your car policy pays what your health insurance does not. 

Is it Cheaper to Have a Different Kind of Collision Coverage?

Collision coverage pays for damage and repairs to your car if you have an accident.  In some states, it is not required by law and you can decline this coverage.  If a car is financed, most banks require collision coverage but, if it is not required, you can pay out of pocket for damages if you chose.   

There are three types of collision coverage – limited, standard and broad.  Limited is the cheapest and provides the least coverage.  Standard is the middle range of coverage.  Broad coverage offers the most coverage and is the most expensive.   To save money, you might want to compare your current collision coverage and see if a cheaper option is better for you.  If you have an older car, you might want to only pay for limited collision coverage and save yourself money to purchase a new car in the event of a major accident. 

Do you Need All the Coverage You Have?

Look at your policy and cancel coverage you don’t need.  Do you need coverage for towing or car rental?  What would be your liability if you cancelled coverage for uninsured motorists?  Talk to your agent about these different types of coverage included in your policy and make an informed decision if you can afford to cancel any of them.   You might be surprised how much money you save each month.

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