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Make
sure you have proper coverage on your automobiles. If possible,
don't try and save money by having just the minimum amount of insurance.
If you're ever in an accident and your under-insured, your insurance
company can just pay off the maximum you were covered for and you're
on your own for the rest. This could mean you'd be liable for thousands
of dollars of expenses. Medical bills alone can especially add up
quick. The more money you have, the more you have to lose. If you
have money protect it.
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If
you drive less than 7,500-10,000 you may be eligible for a low mileage
discount.
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Depending
on what company you work for you may be eligible for a group or
corporate rate on your insurance. This is especially true for employees
of larger companies that employ thousands of workers. Always as
about these types of discounts. The worse they can say is you don't
qualify, but if you do the rewards can be great.
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The
way you pay your bills can also determine what kind of rate you
get on your car insurance. Insurance companies are starting to use
your credit rating against you. They think that if you pay late,
or not at all, it may show you're not responsible and might be more
careless behind the wheel. Being married or having children can
also impact your rate in some states.
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Having
an alarm, air bags, automatic seat belts or tracking systems such
as LO-Jack can also help lower your insurance rates. The VIN number
of the car will usually let the agent know about things like automatic
seatbelts and airbags, but let them know if you've added an alarm
or tracking system.
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Shop
around between different companies. Make sure you're comparing apples
to apples. In order to find out which company really charges the
best amount, you need to make sure the policies are for the same
exact coverage.
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Avoid
speeding and drive save. Speeding tickets and moving infractions
can add points and surcharges to your bill. In some states you may
not be penalized for infrequent infractions. If you get a speeding
ticket you may not be immediately surcharged. If you don't get another
speeding ticket for a certain period of time, such as 2 years, it
may be taken off of your record. However, if you get a second speeding
ticket within that period of time you would be surcharged for both.
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Younger
drivers in some states can avoid higher ratings by taking drivers
education courses. Some states reduce your rating when you hit a
certain age, such as 25. After driving incident free for a period
of time you may also be eligible for a reduced rating.
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You
can save money by raising your deductibles. This is just like gambling.
You're playing the risk that you are not in an accident. If you're
accident free and don't need to pay your deductible you benefit.
If your in an accident and you need to pay your deductible then
this could cost you.
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Almost
everyone knows that a sports car is going to cost more to insure
than a four door sedan. Cars and vehicles are rated on things like
safety, theft and repair history. This helps determine what insurance
companies will charge to insure these cars. Try and consider insurance
rates when purchasing your new vehicle. A savings of $500 might
help you decide on buying your new car when a increase of $500 could
make you rethink your decision.
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Reporting
every small incident can lead to extra surcharges. A small fender
bender or scratch may not need to be reported if both parties agree.
Whenever an injury is involved you should always file report though.
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I've
heard some people advising not to add towing coverage and car
rental coverage, which adds a small amount to your bill. Some
people might have AAA or another type of towing coverage. The
car rental is usually the price of about a one day rental per
year. If you ever are in an accident it may be worth the fee,
instead of seeking alternate transportation or paying out of pocket
for a rental car for a few weeks.
- Make sure to
keep your credit score respectable. There are many reasons for this
of course, but credit scores can influence what insurance companies
charge you for your insurance rates. They believe someone who is less
responsible with their bills is also more responsible behind the wheel.
