With the cost of everything from fuel to food going nothing but up these days, being able to save money in any area is a welcome change. Automobile insurance can be an expensive necessity, but there are ways to save money on it and at the same time make the highways and roads safer places for everyone.
1. Be ticket free. Always be aware of the posted speed limit and stay within it, particularly in hazardous areas such as school zones or road construction sites. Check for parking availability signs before you park your vehicle.
2. Avoid collisions by driving defensively. Knowing what is around you at all times when you’re driving can mean the difference between avoiding a collision and having one. Always know where you can go if you need to change lanes to avoid a collision or road obstruction.
3. Consider increasing your deductibles. Many times, increasing the deductible on a policy will offer substantial savings. Maintaining a good driving record will decrease the need to use the deductible so that on the rare occasions when it must be paid, the savings will more than offset the cash out of pocket. Depositing the difference in a savings account can help defray the out-of-pocket cost as well.
4. Reduce your coverage to the state-required minimums. Often, drivers pay for more insurance than they need. Carrying only the state minimum can substantially reduce the cost of auto insurance.
5. Make sure your policy doesn’t lapse. This is important because reinstatement fees are expensive and most states now require drivers to be insured, so letting a policy lapse can be very expensive if you are stopped. It also reflects better on your insurance record.
6. Find a company that gives longevity discounts. Many insurance companies now offer discounts to their policyholders of longstanding, so if you select an insurance company that will discount your policy for each successive year you are with them, it can also be a substantial savings on your annual insurance cost.
These are just a few ways to lower your insurance costs. Start adding your own to this list today!