The word “cheap” is a word not commonly associated with auto insurance. In these trying times, expensive auto insurance can break your budget. Many people have already found out the hard way that one slip up can make the difference between paying the bills next month, and not being able to afford to pay the bills.
Those of you not feeling the full force of the crumbling economy, there’s still no excuse to throw away money on your auto insurance premiums! If you haven’t updated your policy in the past year, chances are you’re paying too much!
Those with teenagers on their policy, will find these discounts particularly enticing. Young drivers are especially expensive to insure, but luckily we have some money saving tips for insuring teens as well.
There are a bunch of auto insurance discounts available to consumers these days. So many that it would be impossible to list them all here. We’ve grouped these money saving discounts in categories. They’re listed in no particular order, but they all can save you a ton of money on your premiums.
Car Safety – It should be no surprise that a car’s level of safety plays a critical role in how insurance companies calculate your premium.
The more safety features the better. But an even better way to analyze a vehicle’s level is safety is through safety ratings performed by the Insurance Institute for Highway Safety (IIHS) each year, on many of the most popular car models.
Keep in mind that fast and small cars, and many large SUVs will raise your premium, as they have higher safety risks than most other vehicles.
Working With The Insurance Provider – You would be surprised by the amounts of money you could be saving by simply making your insurance provider’s job easier. This is by far the easiest way to save yourself some cash on your next insurance payment.
To start, choosing a high deductible on your policy will relieve some of the financial stress on the insurance provider’s side. As a result, they won’t expect you to pay more to cover these risks.
Not only is paying monthly a hassle, but it is also going to cost you. Paying semi-annually or annually is much like paying a deposit, but you can get it back! If you choose to switch providers prior to the point you had paid up to, you can usually get a full discount.
For Teens – Insuring teenagers, and new drivers in general, can be extremely expensive. If there is anywhere you should be looking to save on auto insurance, it’s here.
If your teen has a 3.0 grade point average or above, they will be eligible for a discount. Your student’s high GPA is a sign of responsibility, and this is one of many benefits they will receive for being a good student. Even if it’s more of a reward for you anyway!
Driver improvement classes can help too if not already required by the state. But the best way to keep your premiums on the decline is to ensure your kids are good drivers to begin with. Chances are they will learn to drive from you. Teach them well, lead by example, and it will save them thousands of dollars for years to come!
