When It Comes to Lowering Your Auto Insurance Premiums, Every Dollar Counts

When It Comes to Lowering Your Auto Insurance Premiums, Every Dollar Counts

Whenever anyone starts talking about saving money on insurance, the first thing that comes up is “raise your deductible.” That will work and so will having all your insurance policies in one place. (Companies tend to offer discounts for multiple policies.) But that’s not the only thing you can do to find cheap car insurance rates in these tough economic times. Simply paying for your coverage six months at a time will save as much as $30. (Most companies tack on a small charge for processing monthly billing statements.) Some other ideas include:

Weigh the value of your car against its age.

If you are driving a vehicle ten years old or more and its estimated value is less than $10,000 look at how much insurance you’re paying over six months. If the premiums total $1,000, think about dropping the collision and comprehensive coverage to lower costs.

Consider things you may be able to do without regardless of the age of your car.

Over a year of payments on any automotive policy, coverage for towing runs as much as $30 with a single tow costing about $100. But, if you are in an accident, the expense of the towing is covered as a collision benefit. Do you really need towing coverage or can you be cautious enough not to run out of gas or lock yourself out? By the same token, do you need benefit for rentals that will cost you $40 a year when you can get a cheap rental for $20 a day? And most years you’ll never need one?

Look for extra rewards due to low mileage driving habits.

Individuals who work at home or who are using mass transit or other forms of alternative transportation to cut down on gasoline bills may also qualify for low mileage discounts on their automotive policies. Limits vary from company to company, but if you can prove how little you drive, it will probably lower your premium.

If you don’t have an alarm system on the vehicle, consider getting one.

Although blaring car alarms going off in grocery store parking lots are annoying, those systems are also potential discount generators. If you carry comprehensive coverage on the vehicle and have an alarm system, ask about an additional security discount. You may even be able to press the point farther if the theft deterrent system has GPS tracking and if the car is routinely parked in a secure garage with its own security measures in place.

Finally, keep your nose clean in terms of your credit or get to work on improving your credit score by clearing off old errors and ferreting out mistakes. Most insurance companies, whether they will admit it or not, look at a customer’s credit to determine their rate. You can ask your insurer to recheck your credit rating at least once a year. If your credit score goes up, don’t forget to press that for maximum benefit with the insurance man.