Saving Money On Your Car Insurance

Saving money on your car insurance

Calabasas, CA January 2, 2009 Dealing with the ins and outs of car insurance can be very tricky and confusing. Following are recommendations that will help you understand some of the more complicated aspects of car insurance and how to lower your cost.

Determining the best coverage's for your needs.
You can help control the cost of your car insurance. For example, half of your car insurance bill pays for your liability coverage's and that has to do with how you are going to use the vehicle, such as how far it is to commute to work and your driving record. If you maintain a clean driving record, you will pay less for your car insurance than you would if you had any moving violations on your record. You can also control the other half of your car insurance premium, which are comprehensive and collision coverage's. These cover damage or loss to your vehicle. It was vandalized or stolen, or you hit someone.

Look for insurance discounts.
Many insurers will give you a discount if you buy two or more types of insurance policies from them. For example, purchasing car and homeowners insurance from the same company. More cost-saving suggestions are to ask about discounts for daytime running lights, anti-lock brakes, air bags, and anti-theft devices. Multiple discounts can get you a cheap car insurance quote.

Look into stacking your uninsured/underinsured coverage's.
Stacking uninsured/underinsured motorist coverage's means you can have a higher claim limit on your auto insurance policy. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation. Be sure to check your car insurance contract to see if this is allowed. Be advised that you will pay a higher insurance premium if you have stacked coverage. It could be 15% to 25% more depending on the litigious nature of the state in which you reside.

Consider taking a higher deductible.
You can lower your car insurance premium by increasing your comprehensive and collision deductibles. Just make sure that you can pay the higher deductible if you need to file a claim. Also, you can try saving the difference between your current deductible and a higher deductible in a rainy day savings account in case you ever have to file a claim.

Notify your current car insurance company when changing car insurance companies.
Be sure to cancel your old policy when switching car insurance companies. Do it as soon as you receive your new policy. Not one day before you have your new policy in your hand. That's important because some states like New York will fine you for the number of days you go without insurance. Most car insurance companies specify in your contract that you can cancel your policy any time you want by informing them in writing about the date you want that coverage to be terminated. Or you can cancel your policy over the phone. Be sure to note the date and time you called to cancel as well as the persons name that you spoke with.

Check with your car insurance carrier BEFORE you purchase a new or used car.
Your car insurance premium is based in part on the cars sticker price, the cost to repair it, its safety record and the likelihood of it being stolen. Remember to avoid shopping by price alone. You want a car insurance agent and company that answer your questions and handles claims timely, fairly, and efficiently.

Choose the payment option that best fits your budget.
The majority of car insurance companies will give you the ability to make payments for your car insurance policy, but that comes at a price. Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up. Some companies will give you the option of signing up for an automatic debit program and waive the monthly service charge in return.

Shop for your car insurance.
In most states there are hundreds of insurer companies competing for your business, so it's possible to save hundreds of dollars by obtaining quotes from different car insurance providers. Work with your current insurance provider to get more than one quote. It pays for you to shop around, especially if you feel you've been paying too much. That's the optimum way to get a cheap car insurance quote.