Every year your car insurance premiums go up, even though the value of your vehicles goes down. You’ve probably thought about increasing deductibles or lowering coverage to save money, but wonder if that’s a good idea.
We talked to a seasoned insurance expert who’s worked with dozens of major insurance companies over her 30 year career. She gave us some great tips on how you can save money without increasing deductibles or lowering coverage. But be advised that insurance laws and practices are different in each state, so you may not be able to take advantage of every tip listed.
Money Saving Tip #10
Save 10% with E-surance
You can save money by shopping for car insurance on the Internet. But before you plunk down your money or cancel your old policy, check with the insurance department in your state. See if the company has a satisfactory claim settlement history and if any complaints are outstanding. If their track record is good, then the 10% savings is worth it. Just know that you won’t get much personal service from an unknown person at a call center. If that’s not important to you, then pocket the savings and drive on.
Money Saving Tip #9
First accident forgiveness policies may cost you more
In the insurance world there’s no free lunch. If your company is offering a “first accident forgiveness” policy, make sure you shop the premium. Some companies actually charge MORE for this kind of policy. Paying upfront for an accident you haven’t had doesn’t make much sense. Even if they’re not charging more, make sure you ask how much the increase will be for the second accident or violation. Most of the time, that upcharge will be a whopper.
Money Saving Tip #8
Policy lapse=the kiss of death
Most people think that insurance companies are eager to get your check and reinstate you if you pay after the grace period. No way. Letting the policy lapse not only hurts your credit, but if you have violations or accidents on your record, you’ve just given the insurance company a great reason to kiss you goodbye--forever.
That’s right, a lapsed policy is the kiss of death. You’ll have a much harder time getting a new policy and you’ll pay about 20% more just because you’re uninsured.
If you discover that you’re late, contact your agent IMMEDIATELY. They may let you drop the check off at their office. If you’re still within the grace period, pay the $15 and send the check via overnight mail.
Money Saving Tip #7
Track your violations and accidents
Many insurance companies check your driving record every six months. But they’re not so quick to lower your premium once a violation falls off your record. So if you’ve got a major violation like a DUI or reckless driving that’s officially off your record, call your agent and tell them you expect a reduction on your next bill. Not next year, but NOW.