Cutting your Car Insurance Costs

See the original article on BizBrag

When shopping for a car insurance policy, your goal is to get the most coverage for the lowest monthly premium.  It is recommended that you shop around and get more than one quote for a premium before making your decision on a company.  This can be confusing, especially for first-time car owners.  However, when comparing prices, there are some things you can keep in mind to get the best deal:

Bundle Your Policies

You can save up to 25% off your premiums by purchasing multiple policies.  In addition to your car, you can also purchase your homeowners insurance or life insurance with the same company.   It also helps if you are happy with the service from your homeowner’s or life insurance company agent, so purchasing your car insurance policy from them can give you added peace of mind you will have a good experience with your new policy as well.   You might want to start by calling your agent for your pre-existing policies and asking him or her how much it would cost to add your car onto your insurance and then compare that rate with other companies.

What You Drive matters

What type of car you drive can be a major factor in how much coverage you need and how much your premium rates will be.  Luxury cars will cost you more to insure. When thinking about buying a car, you might want to get quotes before you purchase so you will have a true picture of your monthly costs.  Also, don’t modify your car.  Making changes to your car can affect your premiums because car manufacturers work closely with insurance companies to insure car models to the standard.  When you modify your car, what your car insurance is based on will change and your premiums will increase. 

 Choose a Higher Deductible

You can save up to money on your premiums if you raise your deductible for your car insurance.  The majority of people will not bother to file a claim for repairs that might cost a small amount such as $250 or $500.  With the extra money you save on monthly premiums, you can probably afford to pay to fix damage for a smaller amount.  When shopping for insurance, you might want to really think about the amount of damage you would need to have to actually file a claim with your insurance company. 

Read More