Car Insurance: Keeping Costs Down

car insuranceUnfortunately, most of us know the financial sting of getting car insurance, as large numbers of uninsured drivers push premiums higher than they should ideally be. However, there are still a number of money-saving methods available that should help keep your insurance costs down to a minimum.

Pick the right policy

Take the time to carefully consider which type of policy best suits your circumstances.  Here are a few types of coverage that are available:

  • Liability Coverage: Traditionally, this is often the cheapest kind of car insurance policy as it only covers you for any damages caused to another party’s vehicle and to any passengers travelling in your car. Of course, this means that any damages caused to your own vehicle are not covered.  Liability coverage is a suitable choice if you are under 25, living in a high-risk area, or if your car is paid off or not worth very much.
  • Comprehensive Coverage: Again, as the name implies, fully comprehensive car insurance offers you the greatest level of coverage. Not only will you be covered for all damages to all vehicles involved in an accident, regardless of fault, it also covers things like accidental damage and vandalism.
  • Uninsured Motorist/Underinsured Motorist- This type of coverage protects you if you are in an accident with a driver who doesn’t have adequate insurance, or any insurance at all.
  • Personal Injury Protection- PIP coverage pays medical bills for passengers in your vehicle who have sustained personal injuries.  Note: This coverage is not available in all states.

Other Ways to Save

Drive carefully- Car insurance quotes depend on a number of factors including how old you are, where you live, and what you drive. Some factors are out of your hands but there are others that you have the potential to control.  Driving carefully might seem obvious but it is a genuinely effective method of curbing insurance costs. Getting a single speeding conviction can bump your quote up by as much as 22%! Obeying the speed limit you can avoid an unpleasant hike in insurance costs.

Invest in a Security System- If you can afford the initial expense then fitting your car with a security system could pay off in the long term. Insurance providers will often reward you with a more attractive quote for lowering the risk of a theft and subsequent payout.  While immobilizers and GPS tracking are popular devices to fit, there are now even more advanced security features being designed. For example, Japanese scientists are in the process of developing a new vehicle security system based around the identification of the driver’s backside! Sensors built into the driver’s seat provide pressure level aggregate data determine if it’s an approved driver or not.

Stay off your cell- Texting and driving is extremely unsafe and is now considered the leading cause of death for teenage drivers in the United States.  You won’t only save money by avoiding an accident, you might even save your own life.

Sign up for a Car Insurance Rewards Program- I’ve written about programs like the Allstate Drivewise program before.  Basically, you install a device in your car that tracks your overall driving habits including factors like speed, braking, and time of day.  Depending on how safe you drive, you may be able to save as much as 30 percent off of your bill.

What ways do you save on car insurance?

 
About Holly

Holly Johnson is a wife, mother of two, and frugal lifestyle enthusiast. She is the co-founder of Club Thrifty and a staff writer at Get Rich Slowly, Frugal Travel Guy, and U.S. News and World Report's "My Money Blog." Holly has been featured in the Wall Street Journal, Kiplinger Personal Finance, Fox Business, and Daily Finance.

Comments

  1. I save tons by making sure my cars are categorized correctly. For instance, I don’t drive a car to work and my car is categorized as a “leisure” vehicle instead of a commuter. My rates are usually at least cut in half.
    Elroy recently posted..Blog Roundup #4My Profile

  2. I save tons simply by making certain my personal automobiles are usually labeled effectively. For instance, I don’t push an auto to operate in addition to my personal car or truck can be labeled being a “leisure” car or truck rather than the commuter. My personal rates are often at the very least slice by 50 percent.

  3. I just got my car insurance renewal notice in the mail. I called them last time we renewed and they told me I was taking advantage of all the offers and discounts they had, so I’m going to have to shop it around this year. It just keeps going up even though we don’t get tickets or in accidents. The kind of business I should be in, I suppose!
    Ryan @ Impersonal Finance recently posted..you vs. the economyMy Profile

  4. I don’t even know the way I appeared in this article, nevertheless i imagined this article used to be great. I do not recognize whom that you are nevertheless definitely you’re going to a well-known doodlekit for people who may not be witout a doubt. Regards!

Speak Your Mind

*

CommentLuv badge