How to Save Money on Car Insurance
If like most people, you probably want to save on car insurance. Everybody does. We all want as much coverage possible for the lowest amount. Face it, we can only truly appreciate insurance after something bad happens. Right now, we hope to get comprehensive coverage without having paid for it. Yet, that is not how the game is played. You have to pay for the best now, in order to save money when the worst happens.
The best we can do is find ways to purchase adequate coverage for the least possible amount. So, in this spirit of saving, following are some real ways you can spend less on car insurance.
Go to School
Many states and municipalities offer drivers reduced insurance rates for attending a defensive driving school. In most cases there is a required number of hours of training. Sometimes, the program can be completed online. In other places the students must attend a physical school. Furthermore, the instructor must be always certified.
After completing the training, expect to receive a point reduction on your license. Any accumulated points, maybe because of parking tickets or speeding violations, will be subtracted. Moreover, you will receive a mandatory insurance discount for three to five years, depending on the jurisdiction.
Keep Kids on the Plan
Insurance actuaries go to great lengths to determine the risk involved in granting policies to certain customers. They have come to the conclusion, based on solid evidence, that teen drivers are the most risky.
Sadly, when young people are in the car alone, or with others their age, the odds of an accident skyrocket. Consequently, if you have a teen driver in the household, expect to pay quite a bit more to insure them.
One thing you can do to save is keep them on your plan. This way your own good driver rating will help mitigate the high rates charged teens, which you can rest assured will not be kind to your wallet.
Get Adequate Coverage
Do not fall for the temptation to purchase rock bottom insurance. Many people do it. They only have the minimum liability insurance to satisfy their state laws. Then, when an accident happens, they have nothing to cover the always skyrocketing costs of car repairs, hospital bills and legal fees. Instead, they wind up in bankruptcy court, wishing they had spent a relatively little more each month to get comprehensive coverage
Many experts recommend a 100/300/100 auto insurance policy.
- $100,000 bodily injury coverage per person
- $300,000 accident coverage
- $100,000 property damage coverage
The money spent each month will actually result in savings in the event that an accident actually occurs. As most people know, road accidents are happening with increasing frequency these days. In the end, you actually save by spending just a little more.
Pick a Top-Rated Insurer
Along with having enough insurance, you should also consider who the lender is. Always choose a top-rated insurer. The company offering seriously low ball rates is quite often out to take your money with no real plan to pay you after an accident.
By going with an unknown or poorly rated company, you may actually waste all of that premium money. Meanwhile, a well-known insurer will more likely pay out when you are in need.
Get Started Saving
Armed with this information, you are ready to start saving money on your car insurance. Use the extra money wisely.