Save Money when Shopping for Car Insurance

Money saving car insurance tips & information

  • While insurance companies may not admit it. The chances are that even with your first accident your insurance premiums will go up when time comes for renewing your policy. On the other hand there are now some companies that do have a forgive the first accident policy. When shopping for car insurance ask if the insurer has a forgive the first accident program.
  • Drivers who are paying higher premiums due to demerit points or a past accident should opt for short term policies. As your driving record improves your premium for each renewal should go down.
  • If you are an home owner and have property insurance you may be able to save up to 5% on your insurance premiums by getting both insurance policies from one company. Many companies offer such discounts. So it is a good idea to insure your car with the same company that insures your home.
  • Increasing your deductible is another way to pay lower premiums. The higher the deductible the lower the premium. There is no point going for a $100 deductible these days. For such low amounts you are better off paying the repair cost yourself.
  • Many motorists actually do not want to go through their insurance companies for small accidents as they try and protect their driving record. A higher deductible will save you money but make sure you can pay the higher deductible in case you do find yourself in such a situation. It is not uncommon for people do opt for deductibles of $1000 today. The traditional $100 deductibles are history, unless you are prepared to pay more!
  • Buy only coverage that you really need and makes financial sense. For example if you have an old car that is not worth, you should consider dropping collision coverage as this would save you quite a bit on your premium.
  • Many people advise dropping the comprehensive coverage also but I would not advise one to do so as this coverage is not very expensive and you may need it. Comprehensive covers items such as glass breakage and theft.
  • Of course before dropping any coverage you should take into account your own financial condition. If need be could you pay for the higher deductible?
  • New drivers can save money on their auto insurance by doing a driver training course from qualified driving schools. When selecting a driving school check out how much you could save on insurance with their certificate.
  • Try and get a longer policy. While one year was standard in the past, insurance companies now try for six month policies. So instead of a raising your premium once a year you are now faced with the chance of two premium jumps.
  • To be fair I must add that if you are a good driver this may help you and your rate may come down. However the majority of drivers see their premiums going up at each renewal. Its bad driving, inflation or something else.
  • Check if the company you work for has a corporate insurer. Many people save on their auto insurance by using their companies larger buying and negotiating power.
  • Do not switch insurance companies if you can avoid doing so. Sometimes moving to another company to save only a petty sum of money costs you more in the long run.
  • Shop around. Despite the myth that all insurance companies are the same you will find that their rates do vary. Shopping around can save you almost 20% sometimes. With easy access to Internet you can shop all over from the comfort of your home for free. Shopping for car insurance on the Internet costs you nothing and can save you time and money.
  • I have heard the line from insurance agents that their companies rates are higher because they are a big company who will be there when you need them. Personally I would not fall for such a line. Big or small only licensed companies can sell insurance for your car. However it all depends on your own comfort level and affordability.
  • Insurance premiums for cars depend on the model and type of car you buy. Some times a two door car can have a higher premium than a four door station wagon. Check with your insurance broker or insurance agent to find out car models that have higher insurance premiums because they are considered more prone to accidents or theft.
  • Insurance premiums can be paid annually or even monthly. If you have the money pay annually and avoid service and/or interest charges.