In a depressed economy, we’re all looking for innovative ways to save money. In recent months, not just American households, but families across the developed world have had to change the way they consume and live.
One major expense most Americans face is transportation-related costs, your car. If you do own a car, you need general car insurance. Are you paying too much? You may be. Take the checklist below to your insurance company to see how much you can save before your next payment.
Take an online driver education course
In most states, you may be eligible for a discount of 10% or more if you take an online defensive driving course. Some states don’t recognize these courses, so it’s a good idea to check with your insurance company about what discounts they offer on defensive driving courses before taking a course. For a list of driving schools in your city or state, visit Wannadrive.
Find a low-risk job
Insurance companies keep more statistics than thought. One of them is occupational accidents. If your chosen occupation has more accidents than average, your premium will reflect this. Engineers tend to pay lower premiums because engineers have fewer accidents than other professionals. Just doing some research and adjusting your position may be enough to lower your monthly premium.
tell them you’re retired
If you retire, you may be eligible for additional discounts. We’ve all seen ads. This savings especially applies to you if you have a clean driving record. If you’re retired and your insurance company doesn’t know about it, you could be missing out on a lot of savings.
Join a professional organization or car club
Select organizations and auto clubs receive discounts at a variety of retail outlets, including hotels and restaurants. Membership in some of these organizations can also help you lower your insurance costs. If you’re a member of any organization or club, it never hurts to ask your provider if members of that organization get a discount.
Combine your insurance
Some insurance companies may lower your premiums if you use their company for home and auto insurance. If you currently have two different home and auto insurance providers, ask them which premium relief you qualify for if you combine home and auto insurance into one.
car safety features
Your insurance rates may also drop if your car has any extra safety features. Look for vehicles with airbags for the driver and passenger, traction control, good head restraints, anti-lock braking, and all-wheel drive are all features that improve vehicle safety. Bring a list of the safety features your vehicle has to your insurance company and ask specifically how the extra safety features can lower your premiums.
take more risk
By increasing your deductible from $400 to $800, you may have to pay more out of your own pocket in the event of an accident, but you do save significantly on your monthly premium. If you’re a prudent driver, the savings you save by paying lower premiums will pay for itself within a year. Increasing your deductible will not change your coverage amount.
be a good citizen
Simply having a good credit score or doing well in school can lower your premiums. Insurance companies have discovered a correlation between credit scores, academic performance and your likelihood of being in an accident. If you do have a good credit score and are doing well academically, you may be eligible for a discount.
The insurance company will bill you for the installment payment. The more instalments you pay, the more you pay. If you are financially responsible, ask your insurance company about different payment options, such as annual payments, six-monthly payments, or quarterly payments. Use this strategy with caution as you could lose coverage by missing a payment.
ask for better service
Believe it or not, there are still some ethical constructs in the business world. If you’ve been with the same insurance company for years, ask them for a discount as a loyal customer. If they refuse, shop around. Other providers may offer better rates or give you better information about your insurance needs.
Hopefully this article has made you smarter about buying general auto insurance. Use this information and convert it to dollars and cents.