With gas prices on an upward trend, you've got to look to other areas to lower your cost of driving. So, why not try to reduce your car insurance bill? Here are five ways to do it.
- Determine the level of coverage you need. Right now, I've got full coverage on my pickup, but that's because it's not quite paid off. Once the truck is paid off, I'm going to lower my bill by reducing my coverage level.
- Shop around. After I made a claim for hail damage on my truck, my insurance company decided that I was suddenly a riskier driver and it increased my premium. I looked around for a different price, and was able to save approximately $350 per year by switching companies. If you go this route, though, make sure you stick with a reputable company. The last thing you want is your insurer skipping out on the bill.
- Check your discounts. When I switched companies, I made sure I was getting every available discount. Discounts typically go to students with good grades, drivers who have good driving records and drivers who take a defensive-driving course. You can also get discounts for belonging to some associations, or for remaining with the same insurer over a number of years. Ask the insurance representative about available discounts.
- Buy the right car. If you are shopping for a car, zero in on a few models. Then, get quotes for those models. When I was looking for a car, I had a few choices in mind. I found out that one of them was about 20 percent more expensive to insure than the others. I immediately dropped that one.
- Avoid tickets. One of the easiest ways to keep your insurance costs down is to avoid tickets for driving infractions such as speeding or failing to come to a complete stop at a stop sign. The amount your premium will increase to will depend on how long you have been with the insurer and your overall risk profile.
What are your ideas for keeping insurance premiums from breaking the bank?
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