How To Save on Car Insurance Premiums

It's time to learn how to save some real money on your car insurance! Below are a few tips on how you can bring down the price of your car insurance premium. With the price of gas, food, movies, housing, and just about everything else on the rise, it's become more important than ever to save on life expenses.

Shop around / switch auto insurance providers

You may be surprised, but different insurance providers have significantly different premium rates. Shop around for quotes from insurance providers such as State Farm, All State, Geico, Century, Progressive, and GMAC. Sites such as esurance.com, insurance.com, and insure.com help you compare multiple policies from multiple companies in the same place. Note that you shouldn't have to pay for getting quotes, so if someone's charging for a quote, go somewhere else!

Drive safely

Having a clean driving record is HUGE in taking your insurance premium down. The fewer accidents and tickets (i.e. speeding) you have, the lower your premium will be. For better or worse, insurers look at accidents and tickets as indicators of your likelihood of making a claim (which means money out of the insurers pocket). So, think twice the next time you want to speed through that red light or put the pedal to the metal.

Take video safety courses

Some insurers have short videos or courses you can take which significantly reduce the price of your premium. Ask your insurer - watching a 30 minute video (one-time only) has reduced my premium by over $250/year.

Drive less

Some insurers have different premiums for those who drive under the average annual mileage. For example, State Farm reduces its premium for those who drive under 7,500 miles per year. Ask your insurer about this!

Purchase multiple policies from the same provider

Often, insurers give multiple policy discounts if you purchase more than one insurance policy from the same company. This may come in the form of multiple car policy discounts or just multiple policy discounts (i.e. home insurance, life insurance, etc.). Ask your agent about ways to reduce your premium!

Some cities have significantly lower premiums than others

If you're looking to move (especially out of dense, urban areas), research cities that may provide a lower premium for you. Often, dense, urban cities have higher accident rates, and thus, higher insurance premiums.

Lower your deductible

If you're one who drives safely, and your insurance premiums are high because you fall into certain categories (new car, type of car, male vs. female, age group, etc.), look into increasing your deductible. If your deductible is currently $100, making it $300 or even $500 often has a significant impact on premium prices.

Ask your insurance agent!

Talk to your insurance agent about ways to lower your premium. They should be open to exploring options if you're proactive about it. If you feel they're hiding information and/or not helping you, ask yourself if this agent and company are even right for you to begin with!

Understanding Car Insurance Coverage

Coverages

An auto insurance policy is made up of different types of insurance coverages. While there are many types of coverages available, you are only required to have four:

1. Bodily Injury to Others;
2. Personal Injury Protection (PIP);
3. Bodily Injury Caused by an Uninsured Auto; and
4. Damage to Someone Else's Property.

Optional insurance coverages such as Comprehensive and Collision are commonly purchased by consumers.
Each type of insurance coverage has a limit, meaning that the insurance company will not pay more than this amount for a claim. You are required to purchase certain minimum limits for each of the required coverages. Given the high costs associated with serious accidents, most drivers buy coverage limits beyond the minimum requirements.

Types Of Auto Insurance Coverage

Liability coverage  
Many state laws require liability coverage, also known as “property damage/bodily injury.” It can help cover expenses from damaging a vehicle or injuring a person in an accident.


Collision coverage
Collision insurance can help pay for damage to your car after an accident involving another vehicle.


Comprehensive car insurance
Comprehensive coverage can help pay for damage to your car from vandalism, weather events and accidents involving animals.


Vanishing Deductible®
We want to reward safe drivers. Our exclusive program reduces your deductible $100 for every year of safe driving.


Uninsured motorist insurance
This car insurance coverage helps protect you and your vehicle from uninsured drivers and hit-and-run accidents.


Underinsured motorist insurance
This insurance helps protect you from drivers who do not have enough insurance to cover the costs of an accident.


Medical payments coverage
Mandatory in some states, med pay can help cover medical costs related to an accident, regardless of who is at fault.


Personal injury protection insurance
Personal injury protection can help defray costs from medical bills and lost wages as the result of an accident.


Accident Forgiveness
Accidents are hard enough. Learn how you can avoid a rate increase following the first at-fault accident on your policy.


Gap insurance
Gap insurance can help cover the amount you owe on your new car after an accident.


Roadside Assistance
This optional auto insurance coverage can help you if you need a tow, run out of gas or get a flat.


Towing and labor insurance
This coverage can reimburse you for a tow and for the labor costs to get your car up and running again.


Rental reimbursement insurance
Rental car reimbursement helps pay for a rental car if your own vehicle can’t be driven after an accident.

Comprehensive Car Insurance

Comprehensive Car Insurance Offers Extra Protection

Comprehensive car insurance is a core insurance coverage that helps you prepare for the unexpected. Typically, comprehensive auto insurance is purchased in addition to the liability insurance that's required by most states to drive legally.

Comprehensive car insurance coverage pays for damage caused by covered events other than a collision with another vehicle, such as vandalism or hail damage. Without comprehensive coverage, you may have to pay to repair these kinds of damages to your car, which can outweigh the price of your policy.

Learn the basics of comprehensive car insurance

Add endorsements to your comprehensive auto insurance for even more protection

It’s easy to customize your auto insurance policy with a variety of endorsements, all designed to make your life easier, such as:

•     Collision coverage
•     Towing and labor
•     Rental reimbursement

Adjust your comprehensive car insurance to fit your needs

Some policies will insure your vehicle for its actual cash value rather than for the replacement cost. That reflects the current value of the vehicle, not what you paid for it. In some states, you can purchase extra coverage, such as gap coverage, new car replacement coverage or vehicle value upgrade. These coverages offer extra protection for newer cars.

Car Insurance Tips

Car Insurance Tips to Help You Buy Smarter

Buying auto insurance doesn't have to be intimidating. There are many options to help you tailor your policy to your needs – and your budget. Armed with some basic information, you can make smarter insurance decisions. These car insurance tips can help you narrow your choices and save time and money.

1. Make sure you're legally covered

2. Understand your insurance options

3. Get at least three quotes

4. Take advantage of discounts

5. Look for extra help when you need it

Different Car Insurance Policy

What are the different car insurance policy types?

If you're looking to buy car insurance, it's easy to feel baffled about the different types of policy on offer, especially when there's such a large number of insurers offering such a wide range of different deals.
But it's worth getting to grips with the various levels of cover, as this will ensure you buy the right policy for your particular circumstances.

 

Third Party car insurance

if you own a car and want to drive on the UK's public roads, third party car insurance is the minimum level of cover required by law. However, the cover provided by this type of policy is very basic. Third party cover simply agrees to pay for damage caused to other people's property, or compensation or costs related to injuries they sustain, in an incident adjudged to be the fault of the covered driver.

 

Third Party Fire and Theft Insurance

If you're looking for a greater layer of protection than that offered by third party only cover, you could consider third party fire and theft car insurance. This type of policy offers the same level of cover as that offered by third party only policies, but in addition, it also offers protection against loss or damage if your own car is burnt or stolen.

 

Fully Comprehensive Car Insurance

If you're looking for the greatest level of cover from your car insurance policy, you should consider fully comprehensive car insurance. This includes cover for damage to your own vehicle as well as any damage suffered by others from a range of causes, including accident, fire and theft.

 

Compare different car insurance types

If you're looking to buy a car insurance policy, you can compare deals from a wide range of providers with just a few clicks of the mouse at MoneySupermarket. This will help you save money by showing you the cheaper car insurance quotes available.

Auto Insurance Laws

Auto insurance laws require some level of these coverages.

• Bodily injury liability
• Medical payments or personal injury protection (PIP)
• Property damage liability
• Collision coverage
• Comprehensive coverage
• Uninsured and underinsured motorist coverage