So, you're shopping around for cheap auto insurance. What do you need to know? Well, there are lots of ways (at least 10) that you can save money. Many of these money-saving ideas may apply to you. (Download These Tips in a PDF)
1. Good Driver, Good Price?
It's no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as "good drivers" and are eligible for discounted premiums? Some good drivers pay a lot more than others, however.
Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies. These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?
The usual reason is that they don't know any better. No one told them which insurance company in the group had the best prices. And, probably, no one told them there was even a group of insurance companies. If you have a spotless driving record, there's no reason you shouldn't be paying the lowest price a group of insurance companies has to offer.
*Tip* Make sure you're getting the best discount for your driving record. Talk to your agent. And remember, be a safe driver. It will save you money and keep your car insurance as cheap as possible.
2. The Beauty of the Bus (or Other Mass Transit)
Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.
*Tip* Some drivers should consider mass transit. Yes, there's a price there, too. But you will reap the savings of gas and lower insurance costs.
3. Low Mileage, Low Price
On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.
*Tip* If you drive less than the average, you could be eligible for low-mileage discounts or short rate, which some insurers offer.
4. High-Profile, High-Cost
The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you're paying more than the average car owner for insurance.
*Note* To get detailed information on your vehicle(s) - or a vehicle you're thinking of buying -
write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the "Highway Loss Data Chart."
*Tip* If it's been years since you've had an accident, you may be better off raising your deductible and paying less each year for insurance.
*Tip* As a general rule, any car worth less than $1,000 shouldn't have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years. Also, look on the web at kbb.com or Edmunds.com
*Tip* Make sure you are taking advantage of all the discounts available to you!
*Tip* Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.
*Tip* Talk to your agent about multi-policy discounts. This can give you the cheapest car insurance available.
At Todd Insurance Agency, we take a personal interest in our customers. We like to share information that can help you protect yourself and your family from financial loss. If you have any questions, regarding this information or your insurance coverage, please don't hesitate to give me a call 843-249-6317 or e-mail me personally at Scott@carolinapolicies.com. Also, see our new series of questions and answers on Ask An Insurance Agent!
@ 2015, Scott H. Todd.The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional. ALL RIGHTS RESERVED.