With the economy still struggling to restore its former prominence, saving money wherever possible is one of the major priorities of Americans everywhere. Insurance is a necessary expense, but can also be very expensive. We've compiled tips from some of the insurance industry's more savvy experts to help you get as much of the cost of that pricy policy back into your pocket: where you need it most.
Sometimes it can be hard to discern between what coverages you need and which you can live (happily) without. If you drive a car with a lower market value (you can find out how much your car is worth from Kelley Blue Book), consider skipping collision and comprehensive coverage on your policy. Often times these coverages aren't worth the cost because your car's repairs may not even exceed your deductible amount (the amount you must pay before your insurance will cover the rest).
Speaking of deductibles, if you raise your deductible to a high amount -- something like $500 or $1000, you could save as much as 15-40% or more. Stay-at-home parents and experienced, careful, drivers who only travel locally may want to consider this. For local drivers, try to organize a carpool with co-workers and friends; so-called "low-mileage" discounts are common for the insured driver who drives less than the average American (usually about 10,000 miles annually). Beware of a high deductible on your newly-driving teenager's policy in the case that they get into an accident, as you could end up paying a lot more.
While I'm talking about teen drivers, remember to include your new driver on the family policy and not one alone by themselves. Teenagers with their own policies pay a significantly higher amount. Additionally, if your child has good grades or passed an acceptable driver's education class, you can also save some more money with most insurance providers.
Consider only purchasing the minimum personal injury protection required by California if your health, life, and disability coverage is strong enough. Overlapping medical coverage can cost a lot more than one may realize.
When purchasing a vehicle new-to-you, try to get as many safety features as possible. Everyone knows about anti-theft systems and air bags, but daytime running lights, anti-lock brakes, and electronic stability control (ESC, or traction control) systems also reduce the cost. A more subtle car will also get you some brownie points with your provider. The safer, less expensive to repair (and less expensive, in general), less-stolen cars will always be cheaper to insure than that convertible Ferrari you've been wanting. To find out how much of a risk your car or potential new ride might be, surf the web over to the Insurance Institute for Highway Safety.
Keep all your recreational vehicles, cars, trucks, and trailers on the same policy. To save even more, switch your homeowners, life, or even commercial (business) insurance to the same insurance provider.
Also pay attention to the condition of your vehicle. Cars that have been in previous accidents or with worn-out components may end up costing you a lot more than you realize. Make sure to keep up-to-date with your regular vehicle inspections and check-ups as a faulty or broken component could cause an accident, costing you a lot more than the price of fixing or replacing bad parts.
Drivers older than 50 to 55 or so (or retired drivers) may also be eligible for a discount. Safe-driver discounts are available to those who drive without incident (accidents or moving violations) for three years or more. Insurance policy-holders who stay with the same company for a significant amount of time usually also save money on their policy with their providers.
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