Top Four Ways to Lower Your Car Insurance Rates

Insurance is the bane of our existence. We have to have it to prevent a huge financial catastrophe, but many people will never actually use it. When it comes to auto insurance, we can’t legally drive without it. So how do we make sure that we are protected, but not paying too much for our insurance? Here are the four biggest ways to save on your insurance.

Bundling – Insurance companies know that if you have more products with them, they not only get more money, but you are less likely to switch to a different company. Bundle your insurances together, and you can save quite a bit on your premiums. In fact, there are cases where people add a renter’s insurance policy to their auto policies, and they end up paying less than they did with the auto policy alone. It turns out that the discount is bigger than the premiums for the new policy.

Storage Status – Do you have a seasonal vehicle? One that is only driven during the summer months perhaps? Call your insurance company and make sure it is listed as garage status or storage status. The vehicle will revert to minimum coverage and can save you hundreds of dollars per year.

Coverage Limits – Playing with your deductibles alone will likely not save you very much money. However, changing your coverage limits could. In fact, sometimes you save more by increasing your liability limits rather than decreasing them. Insurance companies like responsibility, by opting for less than the bare minimum, you show that you’re responsible.

Shop Around – Many people get devoted to one insurance company. For whatever reason, maybe they like the agent, maybe they just like the company, they don’t want to change. But if you haven’t shopped around for at least 2 years, you are very likely paying too much for your insurance. Contact an agent and let them do a free quote for you. If you aren’t saving any money, then don’t switch, but likely you could save hundreds of dollars over the course of a year by switching.

Insurance is one of those necessary evils in life. Instead of fretting about it, make sure that you are getting the best deal out there. Keep in mind that “the best deal” doesn’t always mean the cheapest around. There are a lot of cut rate insurance companies that offer cheap insurance because when you do get in an accident, they will find every way imaginable to not have to pay your claim.

If you want to save money on your insurance, follow these four easy tips and you could likely save thousands of dollars over the next few years.