Save on Your Car Insurance
A recent newspaper article reminded us that most ordinary folks build wealth not by what they make, but instead by investing what they don’t spend (sounds like the old Ben Franklin adage: “A penny saved is a penny earned.”)
Here are some tips to cut your car insurance bill without significantly affecting your coverage:
— Obtain your car insurance and your homeowners’ insurance from the same carrier. Most insurance companies discount coverage if they get all of your business, sometimes by as much as 20% or more.
— Try to have younger drivers “rated” on the oldest (least expensive) vehicle. If necessary, have the vehicle titled in that person’s name to prove to the insurance company that they should be rated on that vehicle.
— Try to remain accident free and violation free. Many accidents are caused by poor driving habits such as quick starts, frequent lane changes, and always trying to get ahead. These behaviors can be changed with a side benefit of lowering your stress level. Consider challenging motor vehicle citations if you feel you are not guilty. A $75 citation can easily turn into an expensive (sometimes hundreds of dollars) insurance surcharge.
— Raise your deductibles on collision and comprehensive coverage. The premium on a $1,000 deductible can be significantly less than lower deductibles, and you can make up for it in a year or two of accident free driving. Also consider dropping collision and comprehensive coverage on older vehicles where the cost to repair the vehicle will substantially exceed its market value.
— Put insurance claims through the other driver’s carrier if the other driver is clearly at fault in an accident. (Your carrier may hold an accident against you even though it is not your fault.) In addition, by putting a claim through the other driver’s carrier you avoid a fight over getting your deductible back.
— Avoid unnecessary coverages, such as road service and towing coverage where you are driving a vehicle covered by a warranty that already includes these items. The same comment applies to rental car coverage. Many new car warranties or dealer policies include providing you with a replacement vehicle while warranty service is being performed.
— Finally, remember that insurance agents generally make their money depending upon how much insurance you buy. It is up to you to determine the appropriate amount of coverage for your financial situation and the types of coverages you should have.
– Kevin Palmer