While you cannot change the fact that you need auto insurance to drive your vehicle legally, you don't have to accept that it costs more than you want it to. You can lower your vehicle insurance costs by taking a good look at your policy and making small tweaks where you can and making sure you are getting all the discounts you qualify for. Here are three tweaks that can save you big.
1. Consider Higher Deductibles if You Have a Great Driving History
If you have had the same auto insurance policy for years, then your deductible needs may have changed. If you signed that new policy right after being involved in an auto accident that you were found at-fault for, then you may have decided to choose a no-deductible policy. It made sense at the time, as your confidence in your driving abilities may have been at an all-time low, and you wanted to be sure you did not have to pay any cash out of pocket if you ended up causing another accident.
It often only takes causing one accident to change your driving habits, and your newly careful driving may have kept you accident-free for a couple of years now and given you new-found confidence in your ability to drive safely. It can be a good time to assess what you can save on your policy by raising your deductibles slightly.
You may also find higher deductibles a better deal overall now if you have a higher income now than when you signed your policy. That $500 deductible may have sounded like a small fortune when you were in college, for example, but it may sound more reasonable now that you are working and pulling in a good income.
For example, raising your collision deductible from $250 to $1,000 could reduce your insurance payment by up to 40 percent. However, remember your actual savings will vary depending on where you live and many other factors.
2. Take That Co-driver off Your Policy
If you added another driver to your vehicle's insurance policy, then you may have simply forgotten to take them off your policy now that they have their own vehicle. Or, you may simply have to take them off if they have shown a track-record of bad driving that you don't want to have to foot the bill for.
While how much you will save by taking another driver off your policy will vary, it can be huge if the other driver is considered a "high-risk" driver. High-risk drivers include people who simply fall into certain age groups, such as teenagers, and people who have bad driving records or DUIs on their records. If you feel guilty for telling that teenage driver they can no longer use your vehicle, you may feel less guilty when you know that dropping them from your policy could save up to $1,500 a year.
3. Ask for Discounts That You May Now Qualify for That You Didn't in the Past
While some factors may automatically be taken into account when you renew your auto insurance policy every new term, many are not. For example, while a higher insurance cost for a past collision or being in a high-risk age group may have been taken into account when that collision finally fell off your record or you hit that great birthday that took you out of a high-risk age group, the fact that you have a new job as a teacher may not have been. Many insurance companies offer discounts for educators.
If you drive fewer miles per day than you did in the past due to moving closer to your workplace or an end in that night-class that required you make an extra long drive a few nights a week, then you may qualify for a discount given to low-mileage drivers.
While these are just a few examples of how small policy tweaks can save you a lot of money on your auto insurance, be sure to inspect your policy or speak with an agent for any other ways you can save. If your insurance is still too costly after making any policy changes that you can, then it may be time to obtain quotes from other insurance companies that offer more reasonable rates and more discounts. You can try checking out one insurance company online at http://www.collinginsurance.com/.