How to save money on your car insurance

How to save money on your car insurance?

The current economic situation is affecting all kinds of people in all countries. It doesn’t  matter if you own a BMW or a Skoda you need to save money, to tighten that figurative belt to get through the bad times. The trouble is that most of us don’t know how to save effectively on our car insurance. We know how to save on gas, groceries and entertainment but auto insurance is a little more complicated to save on without taking unnecessary risks. Doesn’t have to be though. It just takes a little research and thought in order to make great savings without paying for it later.

These examples we list below are only a few of the many ways you can save hard earned cash on your auto insurance. For more information and advice please check out our long list of auto insurance articles.

1. Shop around. Make a note of your current car insurance coverage and phone around asking for a better price. Companies are often willing to bend backwards to get a new client, let them do so. It is important however that you are sure the coverage the new insurance offers is comparable to the current one, or if your circumstances have changed that it covers all your insurance needs. It doesn’t matter if you were pressured into a quick (and with hindsight) and bad decision in the past you can change car insurance provider at any time.

2. Go online. Searching for car insurances online is easier, cheaper and faster than traditional ways. You can search through more quotes in a few minutes than you would be able to check in a month using the traditional appointment and interview method.

3. Be flexible on the type of coverage you search for and make sure you understand the meaning and extent of each type of coverage. Some insurances offer the same types of coverage but with different limits. It’s not the same to have medical expenses cover for 20,000 to 100,000 dollars than 10,000 to 20,000. As the saying goes, you want to make sure you are comparing apples with apples. Decide what kind of cover you need and save on the types of coverage you do not need. To illustrate: if you have an old pickup not worth 2,000$ it might not be worth spending much on accident cover which ultimately is capped by the price of the vehicle. However no matter the value of the car it is still worth spending as much as you can afford on medical and personal liability coverage.

4. Save money with higher deductibles. Higher deductibles can save you serious money if you are able to cover the cost if you make a claim. Deductibles mean the client pays the first xx amount of dollars of any claim. The higher the deductible the cheaper the premium.

5. Ask for a discount. Discounts can be granted for any amount of reasons. If you only use your Audi on weekends, tell your insurance company, get a discount. If your cars are always parked in your garage at night, if your yearly mileage is low, you can get a discount.