How long ago did you set up your auto insurance? Many people set it up once and forget about it, but if it has been a few years, your needs may have changed and you may need less (or more) insurance. The end of the year is also good time to do some comparison shopping.
Many auto insurance companies offer a variety of discounts to qualifying policyholders. Find out if you’re eligible for some of these auto insurance discounts:
- Multi-vehicle discount
- Teenagers with GPA of 3.0 or higher discount
- Loyal customer discount
- Anti-theft devices discount
- Accident-free discount
- Moving violation-free discount
- Low annual mileage discount
Buy only what you need
If you own an older vehicle, you may not need to carry comprehensive and collision coverage.
The Insurance Information Institute states that if your car is worth less than 10 times the premium, purchasing the coverage may not be cost-effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book. But remember if you have an accident that’s your fault, you’ll be on the hook for the full value of your car. This is another instance where a healthy emergency fund is critical.
You could get a better rate on your car insurance if you also buy your homeowners and other types of insurance from the same company.
Notify your provider of any changes
Changes in your driving patterns can yield large savings. If your daily mileage decreases due to factors such as relocation or a shorter commute — or you no longer drive to work because you now work at home or have retired — your rates will likely follow suit, as you will be less likely to be involved in a car crash. Also, removing drivers who no longer operate your vehicle from the policy will reduce your premiums.
Maintain good credit
Like it or not, many insurance companies equate bad credit with a higher likelihood of filing claims. That means a bad credit score could result in higher premiums.
Don’t pay monthly
You can probably get a discount for paying your bill all at once instead of in monthly installments. The savings can be substantial. Ask your insurance agent.