Five Ways to Reduce Your Auto Insurance Bill

If you are like most people, every six months you receive a bill from your insurance company for your car insurance. Most of us simply bite the bullet, pull out the check book and try to forget the experience as soon as possible. Like many unpleasant tasks, the sooner we get it over with the better.

Next time your insurance bill comes, take a different approach. Look for opportunities to reduce your total insurance cost. Here are a few suggestions along these lines:

• Many of us carry small deductibles, which can be costly. Consider increasing your deductibles so that only serious damage is covered; the savings can pay for minor damage if it occurs.
• If you tend to keep your car for more than a few years, consider dropping collision coverage when the value of the vehicle drops below the anticipated repair cost in the event of serious damage.
• Inquire about discounts for passive restraint systems (air bags and automatic seatbelts), multiple vehicle discounts, and discounts for safe driving records and/or successful completion of driver education courses.
• Make sure that younger drivers are rated on the vehicle actually used where it is not the most expensive or highest risk vehicle on the policy. Many companies try to force you to rate younger drivers on the most expensive vehicle even where they do not use it.
• If you move to a less congested area, immediately notify your agent so that your policy can be re-rated and any excess premium refunded. Rural locales have much lower premiums as compared to urban and suburban venues.