The easiest way to save money on auto insurance is knowledge. The auto insurance buyer needs to know what they need and what they do not. Insurance agents make money based on what they sell, so it makes sense that they will offer the expensive packages first. This is a short list of the breakdowns that can save you money.
• What does your driving record look like? Most states use a point system and insurance companies can use these points against you. It generally takes three years for the negative information to be removed from your record, so time your insurance shopping when your record is clean.
• How much coverage do you need? If you financed your car, you will be required to carry full coverage auto insurance per your auto finance company guidelines. Then there are state minimums, uninsured motorist, full coverage and everything in between. You are buying insurance to protect you against the financial risk, so base your coverage on your needs. If you drive a $25,000 car, then full coverage makes sense, but chose a higher deductible if possible. You will save an average of 15 to 30% of your insurance premium by raising your deductible from $500 to $1000.
• What do you drive? Large sports cars cost more to repair than any other auto currently in the market. Insurance companies will share this loss with you, the insurance policy holder, so chose your vehicle wisely.
• Group all your insurance policies within the same insurance companies. While you are shopping around for your cheap auto insurance policy get the renter’s and home owner’s insurance quotes too. This will save 10-15% off your annual auto insurance premiums.
• Then ask about all the discounts available. Insurance companies will often offer good student discounts, safe driving class discounts, and even low mileage discounts. If you park your motorcycle over the winter, ask for the garage discount.
All of these steps will help you save money on your auto insurance. The most important step is to remember you are the buyer and you deserve to save money. There are thousands of insurance companies that want your business and you have the power to use this to your advantage. So remember you are the boss and you are in charge. Enjoy the moment. And then pamper yourself to a nice treat with the money you saved.