By: Bryan Williams
These days, everyone is looking to save money. Owning a vehicle can be very expensive and your car insurance is usually one of the major costs associated with owning a car. There are several things you can do to lower your car insurance without the risk of reducing coverage or being under-insured.
1. Shop Around/Use a Local Independent Agent
Prices can vary from company to company, so it is important to shop around for new car insurance every few years. A good resource is usually a local independent insurance agent. Independent agents usually deal with multiple insurance companies so they are able to do the leg work for you and make sure they are securing the best rate available. This can save you the time and hassle of contacting multiple companies and trying to decipher and compare various quotes. Local insurance agents also know which companies have most competitive rates in your particular city or state.
2. Maintain a Good Credit Record
Most auto insurance carriers use credit information to price auto insurance policies. Research has shown that people that maintain a solid credit score also file less insurance claims. Check your credit score often to make sure no errors are present.
3. Before Purchasing a Car, Check your Insurance Cost
The type of car you own is also a major factor in determining your insurance cost. The total cost of the car, cost to repair it, cost of parts, and insurance claims history. Typically sports cars or cars with high performance engines have higher insurance costs.
4. Seek Out Discounts
Auto insurance policies offer many discounts. Check to make sure you are receiving every discount* that you qualify for. Some of the discounts that auto policies offer are:
Homeowner Discount
Antitheft Devices
Antilock Brakes
Drivers Ed Courses
Defensive Driving Courses
Accident Free
Good Student Discount
Air Bags
New Vehicle
Occasion Driver
*Discounts can vary from company to company
5. Reduce Coverage on Older Cars
Consider dropping the physical damage coverage on an older car. Since auto insurance settles at actual cash value, the insurance carrier will pay you the value of the car at the time of the claim if involved in an accident. As a car matures and the mileage increases, its value tends to decrease, and therefore, it may not be worth paying for the coverage on the car itself. While it might be a good idea to drop the physical damage coverage on an older car, it is still very important to maintain all other coverages for the car. Be sure to check with a local agent before making any changes, as coverage may vary from state to state.
*McGriff-Williams Insurance is an independent insurance agency specializing in auto, home, & business insurance throughout the Gainesville, Florida area.
