I am the king of insurance, so hear me roar. I didn’t set out to become that. It probably just happened, similar to going bald. Maybe it’s because purchasing insurance is a necessity, just like paying taxes and dying. And although though we all shudder at the thought of paying for something we hope we never need, let me tell you from personal experience that insurance is useful to have. Of course, arguing with insurance providers is unpleasant, but that is an other issue.
It’s nice that you can purchase insurance for practically anything. Old-time actor Jimmy Durante, who was known for his large nose, insured his cherished schnoz for $440,000. When compared to the alleged price paid for Jennifer Lopez’s butt, that is a drop in the ocean. Although she denies it, the shapely diva reportedly insured her most valuable item for $27 million.
Despite the fact that none of my body parts are worth $27 million or 27 cents, I am completely covered by insurance. I’m covered if I get sick. I’m covered for concerns at work. I’m covered if a cyclone comes our way. I’m covered if I pass away.
While it can be challenging to find ways to reduce the cost of homeowner’s insurance, general liability insurance, or health insurance (I’ve tried), there are things that we can all do to help drive down the cost of auto insurance, whether it is obtained from an accented gecko, a brunette named Flo, or the good hands people.
Finding out what your state requires should be your first step. Personal Injury Protection is a legal requirement in some states, such New Jersey, but is not in “no fault” jurisdictions like New York.
No matter what state you reside in, auto insurance packages incorporate a variety of coverage options. For instance, liability insurance covers other people’s property damage and injuries. Injured parties’ pain and suffering as well as court fees are covered under liability. Most states have minimal standards for liability insurance.
No matter who is at blame, medical expenditures are also covered by auto insurance. If your car collides with another car, collision insurance will cover the damage. If the vehicle is damaged by a fire, vandalism, theft, or other events unrelated to a collision, comprehensive coverage will pay for the damage. (Reference: Travelers)
Your driving history, how frequently you drive, where you park it, where you live, the kind of car you drive, your age, your sex, your credit score, and, of course, the type and amount of coverage, all affect how much you pay for auto insurance.
Yes, auto insurance is complicated, but you might be able to save some money if you follow the advice in the pages that follow.
5: Increase the Deductible by five.
The deductible can be raised as a surefire approach to save money. That is the sum a person must pay before their insurance starts to cover them. For instance, I once drove into my mother’s driveway at two in the morning and slammed into her statue of the Virgin Mary that was encased in a cave of rocks. Yes, I’m going to hell, but much worse, I damaged my baby, the Mad Mustang, to the tune of $1,000. I foolishly attempted to retreat from the cliffs. $500 was my deductible. The balance was covered by insurance.
Your insurance rate will decrease if you raise your deductible to a more substantial amount. This is due to the fact that you are bearing a greater portion of the financial burden [source: Car Insurance Rates]. Before raising your deductible, give it some thought. Make sure you have the extra funds available. Think about your driving history as well. Increasing your deductible is usually not a good idea if you have a history of accidents [source: Car Insurance Rates].
Using Driver’s Ed to Save Money
Customers who have successfully completed a driver’s education course will typically see their insurance premiums reduced. A certificate of course completion is all that is required. In high school, I really took a driver’s education course; the grotto incident happened a year later.
4: Invest in a Low-Profile Vehicle
Chances are if you ever see a Ferrari or a Porsche cruising down the road, the owner is paying top dollar for auto insurance protection. This is due to the fact that such well-known cars are more expensive to fix and more appealing to thieves. Consider this for a moment: What was the name of your first car when you were a teenager? It cost less to insure my cousin’s 1976 Cutlass than my recently purchased Mustang. Decide instead to purchase a Taurus if you wish to save some money rather than a Ferrari. Additionally, find out how much it will cost to insure a new car before making a purchase.
3: Combining Policies
Combining your auto and homeowner’s insurance can result in cost savings if you own a property. The majority of businesses will provide you a 10% discount on your full coverage. I save 20% by getting all of my insurance from the same provider. Although ten or twenty percent may not seem like much, as the years pass, it adds up. You never know how much money you can save, so the trick is to ask.
Nobody’s to Blame
No-fault insurance is a type of motor insurance that enables a person to get compensation from their insurance provider regardless of who was at fault for the collision. No-fault insurance is not mandated in all states.
2: Prevent Double Coverage
Don’t you detest having to pay twice for the same thing? You can be paying twice for the same coverage if your auto insurance policy includes personal injury protection, generally known as PIP. Following a car collision, PIP coverage pays the insured driver’s medical costs. PIP coverage is a mandatory requirement for drivers in some states, primarily those with “no-fault” insurance [source: Cheap Oklahoma Auto Insurance].
Some PIP plans allow you to pay payments while you’re out of work, such as child care costs, in addition to covering your medical and hospital costs. You generally don’t need additional PIP coverage with your motor policy if you reside in a state that does not mandate PIP insurance and you have adequate health, life, and disability insurance coverage.
Other Money-Saving Ideas
There are a number of additional strategies to decrease your insurance expenses. For instance, if you are a AAA member, stop using roadside assistance (American Automobile Association). Asking for a senior discount is appropriate for seniors. Drop the collision insurance as well if your vehicle is older.
Driving Less
How many miles do you drive? is one of the inquiries an insurance agent will make when you apply for auto insurance. Are you aware? Most definitely not. Maybe we should both start keeping track of the distance. Less-drivers are charged less. The reasoning is straightforward: The less you drive, the lower your risk of an accident.
Some businesses provide customers who travel fewer miles a 50% discount. Although a 50% savings is fantastic, it has a cost. Along for the voyage is Big Brother. Your car will likely need to have a mileage tracking device installed by the insurance company. These gadgets monitor your driving habits, including how many miles you cover, how quickly you go through town, and if you drive more frequently at night or during the day. Even a monthly fee for the equipment may be required.
Others provide clients with discounts of up to 35% if they own a GM vehicle with OnStar Vehicle Diagnostics. You might be eligible for the GMAC low-mileage discount if you have OnStar and travel less than 15,000 miles annually. Additionally, some businesses provide pay-as-you-go insurance to significantly reduce costs for people who drive fewer than 15,000 miles annually. The program is intended for those who live in cities and take public transportation, older individuals who don’t drive a lot, and people who work from home (I just learned something new, today).
Anyway, at the end of the day, doing your research, asking questions, and shopping about are the keys to saving money.
