We’re all feeling the financial pinch during this recession, but there are still plenty of places you can find savings if you look. If you haven’t changed your policy in a few years, here are five tips you can use to find auto insurance discounts.
Review your coverage.
It’s common to keep your coverage from year-to-year or car-to-car, but that’s a mistake. Take a step back every couple of years to see if you still need or want everything you have. If you’re driving an older car or driving less, you may want to consider increasing your deductible or removing your comprehensive and collision coverage, which can lead to significant savings.
Pay up front.
If you’re on a budget, it’s convenient to pay your annual auto insurance premiums monthly, but the real budget-friendly option is paying it all at once. Car insurance companies often charge $5 – $10 “convenience” fees for the monthly premium payments, and that means up to $120 per year in their pocket instead of yours.
Shop around.
All of the major insurance companies’ websites are easy to get a quote from, so take an hour and see if sticking with your current insurer is costing you more than it should.
Get good grades.
This one is for students and parents of students only, but can be a big saver. If you have a straight-A student on your insurance policy, call up your insurer and let them know. They don’t follow your child’s progress in school, but they will often have discounts available for good students.
Be a safer driver.
We’re all tempted these days while behind the wheel by cell phones, navigation systems, and MP3 players, but distracted driving has been blamed for as many as 80% of all automobile accidents in the US (depending on who’s statistics you use). Reducing your distractions by doing little things like presetting radio stations, reducing (or eliminating) phone calls, and not texting.
If you follow these few tips, you should be well on your way to putting some of those hard-earned dollars back into your pocket.
