Several Easy Ways To Save Money On Car Insurance

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{The following is a guest post, covering several ways that you can save money on car insurance}

Everybody needs some extra cash once in a while.  Whether you are saving for a house or just want some extra spending money for the weekends, the aim is to cut expenses where you can and save the rest for yourself.  Car insurance is one of those expenses that give you a little wiggle room.  Here are some quick ways to save money on car insurance.

Deductible

Have you looked at your car insurance deductible recently?  Generally, the lower your deductible, the more your monthly premiums since the car insurance company knows that they will have to cover more if you are ever in an accident.  So if you can keep more cash set aside for the deductible if you ever need it, than you can raise your set deductible to that amount and save on your monthly premiums.  A jump from a $500 deductible to $1000 can save you real money per month depending on your plan.

Coverage

Is your car older than you?  Do you really need full coverage on a paid off car worth less than one year of car insurance premiums?  Please take a realistic look at your vehicle to determine how much coverage that you need.

It may be time to go down to liability only OR it’s the family vehicle with the most use and you need to raise its coverage.  Only you can determine your car’s worth and select the right coverage for you.  The less coverage, the cheaper the car insurance monthly premiums.  But you would also receive less help with an accident.  Try realistically balancing both of those points and selecting the right compromise for you.

Shop Around

If you know what coverage and deductible that you need, then it would be time to get several car insurance quotes to find the best deal.  Not all companies will charge the same thing for the exact same policy.  You can go online or call around to get a handful of quotes to choose from.

Online, there are location-specific sites that can give you multiple quotes from different companies at the same time, a good example of such service will be iselect in Australia.  You could also go to several companies’ websites and get the quotes one-by-one.  On the phone, just remember to give the same details to all of the representatives that you speak with.  Also remember to ask if you qualify for any special discounts since they can let you know the options.

Saving money on car insurance doesn’t have to be difficult.  Just be realistic and shop around.  With luck, you’ll get the coverage and deductible you want at a lower price than you’ve been paying all along.

Trying To Save Money On Car Insurance? Here Are 5 Things You Are Doing Wrong!

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[The following is a guest post on behalf of Cheap Car Insurance]

One of the most frequent mistakes car owners make is overpaying for insurance coverage. There are several reasons that people don’t save money on car insurance. Here are some of the most common:

5 Reasons You Do Not Save Money On Car Insurance

Buying Too Quickly

Often, people don’t even think about looking for car insurance until the last moment. Then, they are in a rush to get coverage, and fail to shop around. Taking the time to research can help save money on car insurance.

Buying Only Name Brands

Sometimes, people think that only the big name insurance companies are reliable. This is not true. Most states regulate insurance companies closely. If a company is licensed to do business in your state, it has passed the state’s requirements (this is similar to finding a gas safe engineer).

Sometimes the lesser-known companies offer great coverage and still allow you to save money on car insurance.

Not Asking For Discounts

Most insurance companies offer discounts for various reasons. In many cases, you can get discounts for being a homeowner, or a safe driver. Some companies offer discounts for safety features on your vehicle or for driving a hybrid. Others give discounts to minors with good grades. There are even discounts for belonging to certain groups such as AARP or AAA.

Be sure to ask what discounts may be available for you, and you can save money on car insurance without much effort!

Keeping The Same Company For Years

If you automatically renew your insurance with the same company year after year, you may be overpaying. Failure to check out the competition can cost you money. Typically, your insurance rates will increase every year.

It is always a good idea to check to see if you could get cheaper coverage with another company.

Buying More Or Less Insurance Than You Need

It is important to determine how much coverage you actually need. Most states have a minimum amount of insurance that you are required to carry. For some, this is all that they need. For others, more coverage is better.

If your car is new, you will want to make sure that it is covered for collision and comprehensive damages (although you still may not be able to file a claim for damaged money if you’re in an accident ;-)). If you have an older car, you may only need to be covered for liability.

Another consideration is the amount of deductible you choose. If you can afford to absorb the costs of minor damage, you do not need to pay extra for a low deductible. Choosing a higher deductible can save money in the long run.

In Conclusion

Once you have determined your needs, the next thing to do is to get a list of all of the licensed insurance providers in your state from the department of transportation. Next, go online and check out these companies. Look for comments from past clients and general reputation. Also, look for customer service and ease of contacting a representative.

Next, request free rate quotes from several cheap auto insurance companies. Be sure to do an equal comparison. Do not request one level of coverage from one provider and a different level from another one. By doing this, you will be able to make an informed decision and be satisfied that you have chosen the best, most cost effective insurance that meets your needs.

photo by Bill Longshaw