Car insurance is a relatively simple concept...you purchase a plan that protects you and your vehicle in case of an accident. So why, then, is it so difficult to find the absolute bottom dollar rate for it?
Buying car insurance and getting the best deal is not nearly as simple as it might seem. Sure, you can head out and buy a policy that is worth little more than the paper it is written on...but how do you save money and still have a policy that will protect you and others properly?
Here are some important tips for how to save money on car insurance and still have the policy that you need:
Ask your friends - Finding out what others are already doing is generally an economic mainstay. You want to be informed, right? Simply reach out to your friends and family and ask who they have insurance with. Word of mouth is a wonderful way to save cash.
Shop around - Of course you need to investigate all the options you can find, regardless of what you find out from your friends. There always seems to be a better deal out there, and you can’t take advantage of it if you have no idea it is there. In the old days, you
Combine policies - When you already have a policy with a company, you will generally save a good bit of cash by adding a car insurance policy. If your company will not cut you a discount for adding on, you really should be looking for a different insurance company.
Eliminate excessive coverage - If you have an older, paid for vehicle that is not particularly valuable, drop that extra coverage and simply go with liability. This will save you huge amounts of money and keep your premiums reasonable along the way.
Raise your deductibles - Yes, you will have to pay more if you have a wreck. The difference in cost is generally worth it though. If you are really worried about such things, take all the savings by raising your deductible and put them in a savings account. If a wreck were to happen, you have the money sitting there and available. If not, then you have saved that much cash for yourself. (Why give it to car insurance companies when you can have it?)
Seek out discounts - There are hundreds of discounts out there for everything from working for a particular company to safe driving. Ask your car insurance salesman about what is available to you and your family. You might be shocked at the options that are out there.
Finally - Once you have a policy, don’t rest on your laurels. This industry is constantly changing and a better deal is always popping up. Keep an eye on your bill each time it renews because we have seen companies give you a great deal to sign on with them, then slowly increase your premiums even though nothing changed in our cars or driving history.
When that happens, it's time to pick up the phone and be prepared to go through the entire process again.
Saving money on car insurance can be done - but it is going to take some work on your part.
Do you have any other tips to share?