Easy Way to Happiness

Many people have a love-hate relationship with car insurance; you hate to receive a bill for something you hardly use, but you love it after an unfortunate accident (if you can afford the deductible). Listed below are tried and true steps that anyone can take to reduce their car insurance premiums.

Multi-Line Discount – a family can save a lot of money by simply putting all cars, motorcycles, homes, and apartments under one insurance provider.

Drive Less – If you were laid off or work from home, tell you agent. The distance that you have to drive varies by agency, but with State Farm you will receive a discount if you drive less than 100 miles per week.

Safe Driving Discount – You might eligible for a discount if you have been free of accidents and tickets for several years.

Increase your deductible – A deductible increased from $250 to $500 can save a family hundreds of dollars a year. However, if you increase your deductible, make sure you have the extra $250 if you have to file a claim.

Shop around — when your premium goes up, let your agent know you are looking; chances are they will find some other discounts.

Under 25 parent discount – At the age of 25, car insurance premiums decrease because insurance companies feel the driver is now more experienced. However, parents under the age of 25, will also receive this discount because the insurance companies feel a parent is more responsible. Note: you will not receive another reduction once you turn 25.

Full coverage or liability – You only need full coverage if the value of your car, according to Kelley Blue Book, is worth more than repair cost. If that is not the case, change your coverage to liability.

Talk to your agent before buying a new car – The shiny red sports car and the gadget filled luxury car might look good on the dealership floor, but the premiums might cost an arm and a leg. Check prices with your insurance agent to help you make the best decision.

Steer clear from short-term policies – You might receive a penalty for purchasing a short-term policy, go with long-term.

Don’t let your insurance lapse – A lapsed insurance policy indicates irresponsibility and high-risk. Avoid this at all cost. When you are ready to renew you will notice that your cost will have jumped tremendously.

Only insure cars that are driven – Cars that are inoperable do not need to be insured. To avoid any complications or penalties with your state, make sure your car is registered as ‘inoperable’.

Refresh your driving skills – Many insurance companies are now providing courses where people can refresh their driving skills. However, fees are applied to these courses; therefore, determine if reduction in your premium will be worth the cost of the course.

Avoid accidents and tickets – Speeding tickets, moving violations, and accidents can substantially increase your rates for at least 3-5 years.

Don’t let your teenager drive your car – Teenagers are viewed as inexperienced drivers and cost a small fortune to insure. Instead of letting them drive your car, purchase a reliable used car and only get liability.

Have a high FICA score – Many insurance companies are now factoring in ones credit scores to calculate premium cost. A person with a high credit score is rewarded with a lower premium and a person with a low credit score will be punished with a high premium.

Don’t pay your premiums monthly – I love this money saving tip! Avoid the monthly surcharge fee by paying for your premium semi-annually. Start saving to make the 1st semi-annual payment. Once that payment is made, automatically transfer the amount you would pay into a high-yield savings account to earn interest. When your semi-annual payment is due, withdraw the needed amount from you saving account. The interest you earned is now free money.

Out of the 15 options listed above, I hope at least one of them will help you save money on your car insurance.