With the overall economy being what it is, with gas prices going up, with taxes increasing, it is more important than ever to find ways to save lots of money. One place that you can save a lot of money is on your auto insurance. Are you overpaying for car insurance?
But you know what’s interesting? No matter how many commercials we see from companies like Geico and Progressive letting you know to shop around and obtain the best rate, no matter how many of those advertisements we see, 90% of individuals never shop.
Make sure that you’re not that particular person. You work long hours and you don’t want to leave money on the table that you could have saved on your auto insurance. You save a lot of money — hundreds and maybe thousand each year — just by making a few calls and shopping around.
Now, the Insurance Research Council says that if you check around, you save nearly $900 each year on your auto insurance. Think of all the things you can buy for $900.
Where should you start?
Well, call your insurance provider and asked them if you qualify for any of the several discounts that they provide. I’ll wager you do not even understand all the various discounts you could get. Obviously, there are auto insurance discount rates for things like getting a good driving record, but did you know that if you’re a student and you have good marks, you can even get a discount for that? Now, it could only amount to 2-5%, which doesn’t appear to be a great deal. But all of a sudden, a couple of percents does accumulate.
The biggest discount comes if you have a good, accident-free driving record. That can be worth up to 20% in discount rates per calendar year in cost savings. But as soon as you get into an accident — there go the special discounts. So be cautious.
And speaking of tickets, make sure you understand how many points you have on your license. Unless you keep it in mind, call your Motor Vehicles and have them research your record. Of course, if you have significantly more than 3-4 points, you might qualify for a discount simply by taking a safe practices course.
Now many auto insurance companies will sponsor classes to promote safe driving and sometimes you may take those classes and reduce your insurance costs. We’re not talking about a lot of your time — maybe 1 day or four or five hours over several days and nights. Most of the classes cost a small amount of money but not too much — maybe $20-$50. But that’s a tiny price to pay in order to get a substantial discount on your vehicle insurance.
Of course, it should go without stating that you’ll need to shop around every couple of years. Look around, compare prices. While you believe your present auto insurance company is the best one, things change.
Your rates also rely on your geographical area. If you’ve relocated or if you’re planning to move, shop around for auto insurance. Your car insurance company might give a completely different rate for the town you’re about to move to.
So that’s the reality of saving cash for your vehicle insurance. Shop around and compare prices. And undoubtedly, drive safely. It really pays.
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