Smart Reasons to Save, Use and Invest Money

Unique Ways to Save Money on Car Insurance

Car insurance is a very important requirement and is necessary to have if you are to planning on legally drive on the roads in the United States.  Currently, numerous car insurance schemes from various insurers are available on the market.  Such schemes usually vary according to the insurance company.  Sometimes, such insurance policies are too heavy on our pockets and you soon realize that you are spending too much money on your car insurance.

Good Reason for Car Insurance

 

Here we are discussing ways to reduce the cost involved:

1. Go with the right company– It is very important to choose a reliable and well-known insurance company for your car insurance.  By choosing a cheaper insurance company, you may think that you are saving some money, but that saved money is swallowed up in some other way or by the other insurance company if you are in an accident and not vigilant.  Therefore, it is best to first compare the deals and ask for free quotes from many carriers and figure the ideal policy for yourself.

2. Choose the correct policy – You can definitely choose a suitable policy by comparing auto insurance quotes online.  You should avoid policies  that demand extra charges for unnecessary coverage options.  You should consider the damage that can happen to your car and health, then choose the appropriate policy.  Make sure you have enough coverage for you medical expenses and the other parties if you cause the accident!

3. Opt for a higher deductible – Though it may not may any sense initially, but when you opt for higher deductibles, you can definitely save a good chuck of your money over a few years.  Now if you know you are a horrible driver (check your records if you have any) then don’t get a high deductible!  But if you are like me, consider getting a deductible as high as $500 or $1,000.

When you sign up, the insurance company will offer you numerous options for deductible.  Though you may choose the lowest option as it may seem beneficial but in reality the higher the deductible the more beneficial it is for you in the form of a lower insurance payment.  You should keep in mind that the deductible significantly influences your premium.  Therefore, when you choose a low deductible, your monthly payment will be significantly higher.  On the other hand,  choosing a higher deductible will significantly reduce the monthly payment and would save you a good amount of money in the end.

4. Opt for additional GAP – First, what is GAP Insurance?  It’s insurance that covers what traditional car insurance doesn’t!  GAP insurance is good if you have an availed loan on your car.  An availed loan covers the actual cash value and the loan amount that is due, in the event of accident, fire and so on.  Insurance companies determine the ACV (Actual Cash Value) of your damaged car at a much lower value than the retail value that you initially bought your car for, and so you would still be left with a huge amount owed towards your loan.  GAP insurance covers this difference.  Sometimes, the GAP insurance provider may also pay your deductible resulting in considerable benefit to you.

5. Search for new deals from insurance companies every year or every few years!  The payment keep creeping upward each year.  So it pays to shop around every so often!  You’d be surprised how much you can save!

6.  Combine Housing and Car Insurance!  If you combine both of these insurance types, the company that provides both will many times give you a special discount.  This makes it a win-win for both you and the insurance company!

This guest post was provided by Steve.

Thanks,

MR

 

2 Responses to Unique Ways to Save Money on Car Insurance

    • I’ll have to look into that, I heard that there was a cost benefit in doing so, especially with a company like Nationwide… Or at least that’s what the agent quoted me 😉