You’d like to save money on your insurance premiums, wouldn’t you? But let’s take a look at how most consumers think of their car insurance.
They go to the car dealer, and make their best deal on a vehicle. After they make their purchase, then they begin to shop around to get coverage. Although they may at first have sticker shock over the cost of coverage, they shrug their shoulders and think to themselves there is nothing they could have done, and purchase a policy, which is required in most states.
Then they are unlikely to ever think of their insurance coverage again, unless one of two things happen:
1) they are involved in an accident and (hopefully) they have an insurance agent and policy that will adequately protect them,
2) they purchase another vehicle and with it, a new insurance policy.
To save money on your car insurance, think differently, right from the start:
Check with your independent insurance agent before you buy that new car. Since it is more expensive to insure a vehicle that’s either costly to repair, is popular with thieves, or has a poor safety record, from experience, your independent agent can give you upfront guidance. Your agent can tell you which cars can be most economical to insure, based on your or your family’s needs.
Additionally, as you are looking at options for your new purchase, consider air bags, daytime running lights, or an anti-theft device as ways to possibly qualify for additional savings.
When you think about it, the portion of your insurance policy you would want to really be sure to give you adequate coverage is for the medical and legal costs that may result from an accident. While the costs to repair or replace one or multiple vehicles may run into tens of thousands of dollars, medical and legal costs could be in the range of hundreds of thousands (or even millions) of dollars. Rely on the expertise of your independent agent. These are the areas in which you want to be sure to consider all factors and make the right decision. Few online insurance Websites provide you with adequate information to make the proper choice in these areas.
One of the best ways to save money on auto insurance is to avoid accidents by practicing safe driving and avoiding distracted driving.
You and your insurance agent may decide that raising the deductible on your policy is in your best interest. The deductible is the amount of money you would pay out-of-pocket before your insurance policy contributes. By increasing your deductible up from $200 to $500, you could drop the cost of your collision and comprehensive coverage by 15 percent to 30 percent. Raising it to $1,000, could lower that cost by 40 percent or more.
Further, as your car gets older and you pay it off, you may consider even eliminating your collision coverage.  This is the portion of your insurance policy that pays for damage you cause to your own vehicle. Because the cost of repair could be significant, represents a major portion of your insurance premium.
As your children get older, you will realize that insuring a teen driver can be expensive. You can save money in this area by looking at good-student discounts and discounts for completing a safe driving course. Consider insuring teens on your policy rather than creating a policy just for them.
As you get older, you may also qualify for discounts. You may be able to save money once you get married, turn 50 or 55, or retire. You may be rewarded for being a consistent customer or if you haven’t had any accidents or moving violations in three years.
Over time, you may decide or are able to drive less. It makes sense: the more you spend on the road, the higher risk you will be. Insurers realize this and as a result, companies like Progressive even offer pay-by-the-mile auto insurance programs. These programs can be practical for you if you car pool, take mass transit to work, have a very short commute to work, or have a second vehicle that you use primarily for recreational driving.
One final note: Are you a veteran, a teacher or engineer? Some insurance companies offer discounts to members of certain organizations or professions known to have lower risk (taxi drivers, of course, not being among them!).
For the reasons discussed above, it may not be possible for you to easily discover all of the ways you can reduce your insurance premiums on your own. Check with your independent insurance agent. He or she has a wide variety of insurance companies and programs to choose from to help you save money on your insurance premiums.
