Saving money on car insurance costs
Car insurance is one of those necessary evils in life. We don't really want to pay it, but we cannot afford to be without it! Ask anyone who has been in an accident and was uninsured at the time whether they wish they had had car insurance at the time, and most would say yes! Perhaps the biggest reason for lapses in car insurance coverage is cost, but you don't have to risk not having insurance for cost reasons. Here are some things you can do so you don't get stuck either breaking the law or breaking the bank:
Your first option and perhaps most important is to shop around to different companies. Insurance companies are very competitive, and as such, many are willing to work with you on your premiums. One option is to go to a website like Progressive.com and get an instant quote from them. They will give you the quotes of other companies too. Perhaps you prefer talking to a broker in person? This should definitely help you get a deal. Most businesses that deal with someone in person are willing to negotiate on the price. And your local broker has access to many different companies with many different options at many different prices.
Another option is to raise your deductible. The cost savings between a policy with a $50 deductible and $500 deductible are enormous! There is one caveat to this: if you raise your deductible, make sure you have that much in savings in case you actually need to pay it. There is no savings in this if you cannot get your car fixed because you have no money at the time. One good idea is to put the money you have saved on your monthly premium after raising your deductible directly into a savings account, and then leave it there. You now have peace of mind in case an accident occurs.
Something else to consider is whether you actually need comprehensive and collision coverage on your vehicle. If your vehicle is financed, then you usually have no choice and are required to keep it, but if your car is paid in full, then think about dropping that coverage. That is a significant savings each month on your premium. Remember also, though, that your car is now only covered for when someone hits your car. If you hit someone else and your car is totaled, then prepare to pay for a new car for yourself. If you have enough in savings, then perhaps this is not a problem. Some people are not willing to take this risk, and so they hold onto comprehensive and collision coverage until the car's value comes down enough to make the risk worth it.
A final note is a reminder to look at your current policy and see if there are corners that can be cut. Are you paying for roadside assistance? Perhaps you have that coverage already from your car warranty and therefore you can cut that out. Are you paying for car rental? Maybe you have two vehicles, so you would not need a rental car in the event of an accident.
The bottom line is this: you cannot afford to not have coverage, so don't let cost by an excuse!
Your first option and perhaps most important is to shop around to different companies. Insurance companies are very competitive, and as such, many are willing to work with you on your premiums. One option is to go to a website like Progressive.com and get an instant quote from them. They will give you the quotes of other companies too. Perhaps you prefer talking to a broker in person? This should definitely help you get a deal. Most businesses that deal with someone in person are willing to negotiate on the price. And your local broker has access to many different companies with many different options at many different prices.
Another option is to raise your deductible. The cost savings between a policy with a $50 deductible and $500 deductible are enormous! There is one caveat to this: if you raise your deductible, make sure you have that much in savings in case you actually need to pay it. There is no savings in this if you cannot get your car fixed because you have no money at the time. One good idea is to put the money you have saved on your monthly premium after raising your deductible directly into a savings account, and then leave it there. You now have peace of mind in case an accident occurs.
Something else to consider is whether you actually need comprehensive and collision coverage on your vehicle. If your vehicle is financed, then you usually have no choice and are required to keep it, but if your car is paid in full, then think about dropping that coverage. That is a significant savings each month on your premium. Remember also, though, that your car is now only covered for when someone hits your car. If you hit someone else and your car is totaled, then prepare to pay for a new car for yourself. If you have enough in savings, then perhaps this is not a problem. Some people are not willing to take this risk, and so they hold onto comprehensive and collision coverage until the car's value comes down enough to make the risk worth it.
A final note is a reminder to look at your current policy and see if there are corners that can be cut. Are you paying for roadside assistance? Perhaps you have that coverage already from your car warranty and therefore you can cut that out. Are you paying for car rental? Maybe you have two vehicles, so you would not need a rental car in the event of an accident.
The bottom line is this: you cannot afford to not have coverage, so don't let cost by an excuse!