Auto insurance is a must have, but it can also be a huge drain on your monthly budget. Here are a few tips for keeping your auto insurance manageable:
Shop around ~ Get new quotes for auto insurance from competitors every 6-12 months. Circumstances change (maybe an accident or ticket fell of your record or maybe you’re not driving as much) and it’s always good to see what other options are available. You can usually get a quick fairly quickly online. If you really like your current insurance carrier and a competitor offers you a lower rate, it doesn’t hurt to call your current company to see if they will match the competitor’s rate.
Take advantage of “bundled” options ~ You can usually save more money on auto insurance if you take advantage of multi-car discounts or if you have your auto and homeowner’s (or renter’s) insurance through teh same provider.
Membership has it’s privileges ~ Many insurance providers offer discounts to members of various professional organizations. It never hurts to ask if a discount is available! If you have a teen driver, also ask about discounts for good grades.
Take defensive driving ~ By taking a defensive driving course, you can usually get a discount on your auto insurance premium. There are many classes available online and you can also check out DVDs to complete the course.
Raise your deductible ~ Raising your deductible (even from $500-$1000) can have a significant impact on your insurance premiums. It’s worth it to at least investigate the difference! If you do increase your deductible, make sure you have enough money in an emergency fund to cover it!
Pay in lump sums or by EFT ~ If you make payments monthly, you are probably paying $3-5 extra every month for a “service fee” Make your payment in lump sums (6 months or annually) to save money. If you can’t do this, look into payment by EFT because there are usually additional discounts if you choose this option.
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