The best way to save money on your auto insurance is to employ three proven and easy methods: Get quotes from multiple providers, pay up front, and drive safely. The simplicity of those steps are intentional!
Insurance providers are not mystical beings that have secret places to hide…they reward you for being dependable and charge you more when you look like a major risk. This means, if your insurance has been steadily increasing you need to focus on getting a better handle over them.
An overview of Why You Need Auto Insurance
You are throwing an enormous piece of machinery at fellow motorists and everything around them at lightning speed. If you lose control of your vehicle, you will cause enormous damage. In just under three seconds, a typical day could change from a pleasant one into one that costs tens of thousands of dollars.
There are many possible scenarios that could cause you financial pain, from crashing into a fence to hitting a pedestrian to being T-boned by a distracted driver. Each of these scenarios could leave you with an enormous bill, ranging from an amount that makes you say “ouch” to one that makes you say “What do you mean I owe six figures?”.
Finding the Best Deal
Insurance protects individuals from financial ruin. However, all insurance companies price their services differently—each one seems to be playing a game of “guess the number.” It is important to compare rates in order to find the best service; therefore, comparing insurance rates is a necessary skill for survival.
While it may be tempting to purchase the cheapest insurance policy possible, in many cases, the cheapest insurance companies do not provide the best customer service or response time. Large national brands such as Progressive and Geico offer a good balance of price and service. In addition to these companies, independent insurance agents are an option.
Independent agents do not represent one specific company; instead, they are independent agents who work with several companies on your behalf—advertising to you for companies with whom they have a business relationship in addition to those that do not advertise to a general audience. By working with independent agents, you will have access to policies that are not commonly found through other insurance agents. This may allow you to find an insurer that you would not have otherwise considered.
The Lump-Sum Payment Strategy That Most People Miss Out On
You’ll be amazed at the amount of money you can save when you pay for a year’s worth of insurance premiums (either six, twelve or both) upfront. Overnight you can save hundreds of dollars by simply taking this one simple step. Most of the insurance companies out there will provide you with a tremendous discount when you pay in advance for all your premiums.
If your budget is tight consider saving a little bit each month so that when premium renewal occurs, you will have the cash available. Keep in mind that if you find a better price midway through your term of insurance, you can change your policy to another insurer and generally get a refund for unutilized payments on the previous policy—no penalties and no guilt in obtaining your money back.
This is why it’s so important to keep a clean driving record. If you have a good driving record, you will be viewed as an ideal customer by all of the insurance companies, and therefore you will have the best premiums available to you, whereas if you have a bad record then your premiums will be higher than those of a good driver because insurance companies view high risk drivers as being a greater potential for loss on their part.
People often underestimate how much one ticket can cost you. You may think, “Yeah, I’ll just pay the $200 ticket and that’s it,” but that isn’t the case. One small error could end up raising your premium $10, $30, or even $50 a month for many years. Now that $200 ticket has turned into a $3,000 mistake wearing a flashy orange vest.
Take the time to look around, pay for your tickets upfront, and drive like you don’t want any surprise bills in the mail. Car insurance doesn’t have to take all your money unless you let it. Be in control of your own decisions, compare your options, and help your future self out. Also, don’t forget to avoid speeding tickets because they will hurt you, too!
