You can save hundreds of dollars on your car insurance Really?
We’ve all seen those commercials… “Call today to save hundreds!” It’s true, it is true. Use the cost-saving tips below to stay put. You will be rewarded by your insurance company for sticking with them. Just make sure you use the tips below to save money when shopping. You might feel that you are paying too much for your insurance. These are some ways to save on auto and home insurance.
1. Shop early
Auto insurance discounts are often offered by many companies if you place your order at least seven days before the expiration of your policy. The discount can vary, but it can reach as high as 10%, and depending on which carrier, may stay on the policy for many years. Companies offer discounts to responsible consumers who pay their bills on time and shop early.
You may also be eligible for a discount on other products. Ask!
2. You can bundle your policies, but you can also shop separately!
Captive carriers have been touting the benefits of bundling auto and home insurance together for many years. However, they only offer one company. It is possible to save money by bundling your auto and home policies together. Bundling two policies together can result in a discount of up to 30% on your premium. However, this does not mean that they offer the lowest rate without the 30% discount. To ensure the best price, have your agent give you separate quotes. Mini-packages are offered by some companies where your home, umbrella and auto can be combined with one company. Talk to your agent to determine which package is best for you.
3. Contact a local independent agent
Local agents can help you save time and shop you through multiple companies. Consider how valuable your time is. Are you willing to spend time calling multiple insurance companies and giving out personal information to obtain a quote? You can save yourself the trouble and find a local independent agent. Remember that not all 1-800 companies will run your MVR (motor Vehicle Record) before issuing your policy. If you have been cited or involved in an accident, your rate could be artificially lower. For any violations or accidents, they will send you a bill in 30 days.
4. Use EFT to pay
You can save up to 10% on your premium by putting your auto or home policy on an Electronic Funds Transfer (EFT), or even paying full price. Ask your agent for information about the different payment options available and how they differ. If you’re already paying by mail monthly, it might be worth saving!
5. Talk to friends
When friends are able save money on their insurance, or any other product, they love to share. It makes them feel good. Human nature is to want to help others, and to feel competent at the same. So ask your friends who are insured with you and share this article with them!
6. Stay with your company for longer
Insurance companies offer loyalty credits to customers who are loyal. It is better to keep a customer than to find a new one. You will be rewarded if you stay with the company for longer. You should also contact your agent at least once per year to check for any discounts.
7. Keep your credit in good health
Your credit score has a huge impact on your insurance premiums, whether you like it or not. Credit is an indicator of future losses, according to insurance companies. Have your credit scores improved recently? With your permission, your insurance company may run a credit check to determine if you are eligible for a lower rate.
8. Previous insurance limits
Low policy limits could be hurting your business. You will be penalized for switching to another carrier if your policy limits are lower than 50/100. A new insurance company will tier you partially based on your old insurance limits when you sign up as a customer. Low limits will result in you being penalized and your premium will increase. Consider raising your limits. This is not only a smart way to save money but it also protects you financially in the event of an unfortunate accident.
9. Raise your deductibles
Do you have a low deductible? It’s more expensive. Although everyone has different preferences regarding how they use their insurance, this is a good question to ask yourself: Would you really like to file a claim for $500 or less? Even if you aren’t at fault, this could impact your premiums. Discuss your options with an insurance agent to determine the best one for you.
10. The cost of a house rebuild is higher than the price you paid.
This is a huge one! Many people believe that the amount they paid for their house is the amount they should insure it for. You want it to be safe and rebuilt after a storm or fire. You must also consider the land’s value when you insure your house for the amount you paid. An average property is worth between 30-40% of its land value. Insurance agencies will usually use a cost estimate to determine the home’s rebuild value, and then they will speak with you. You should not include the land’s value.
11. Don’t be a claims magnet
People are often found filing theft or vandalism claims when they have taken personal items from their cars. Personal effects such as iPods, CDs, and cameras are not usually covered. The claim is usually made because they left the item visible on the damaged vehicle’s seat. You can hide an iPod or other MP3 player in your car by putting it under your seat or in the glove box. Talk to your agent before you submit a claim to ensure they are able to assist you with the claims process.
12. Consider the cost of insuring your new vehicle or house before you shop for one.
Your compact sedans and minivans are the most affordable vehicles to insure. You can get insurance quotes from many companies for free on vehicle modifications.
Consider whether the property is close to any streams or bodies of water. Your mortgage broker might require that you have flood insurance. This can cost thousands of dollars per year. Although the sound of water can be tranquil, you will pay more for insurance if it is near. Before you make an offer, get a quote!
13. Education level
Insurance companies have begun to offer discounts on products depending on how many years of education you have. A college degree will get you a bigger discount than someone who has only a high school diploma. Get the biggest discounts (usually around 1-3%) if you have a master’s degree.
14. Is your ticket about to fall off? Request a MVR review!
This should be disclosed to your agent. While penalties can vary widely, it’s not uncommon for them to exceed 50% of your premiums. The penalties for the first ticket are not as severe as those for the second or third. The carrier may review your MVR if you have tickets coming off your insurance. This will vary depending on where you live. Remember that if your MVR is reviewed by the carrier, they might find additional tickets you haven’t disclosed. If this happens, you may need to keep silent.
15. Additional items to consider:
a. You can add an umbrella to your auto insurance and almost pay the cost of the umbrella!
b. You may be eligible to receive a discount for good students drivers if you have young operators.