Every automobile insurance commercial tries to sell you on saving money on your automobile insurance by ‘bundling and saving.’ I’ve got a better idea; here are 8 tips for saving money on your automobile insurance.
Ah, as the cool nights of autumn become the, well, the warm days of winter, and holiday joy becomes the pain of looming credit card payments, you, like many others, may begin an annual search of finding ways to save money on everything from the cellular phone bill to food. Let me help with these 8 ways to save money on your automobile insurance.
Tip Number One: Maintain Continuous Coverage
Many companies will charge more for an automobile insurance policy if you cannot show evidence of being currently insured for at least one (1) to three (3) years prior to your application. So, even if you don’t own an automobile, consider the purchase of a Non-Owned Automobile Insurance Policy. You can also join an organization like ZipCar for about $19.00 each month, which includes liability coverage limits of $300,000. Either way, you can save thousands of premium dollars.
Tip Number 2: Head Back To School
Take a Point and Insurance Reduction Class. You’ll automatically
qualify for a 10% discount on your personal liability, no-fault, and collision
coverages. And make sure your children, and anyone else who regularly drives your car (and is hopefully listed on your automobile insurance policy as a driver), takes the class.
Here’s Number Three: Send The Kids Away To College, Far, Far Away
If you have children in high school, and they are trying to choose between a college 88 miles away, and another one at least 100 miles away, choose the school at least 100 miles away. As long as both schools offer similar need-based tuition plans, you will save money by sending your offspring just another 20 or so miles away. Why? Many companies offer a “Student Away At School” discount and depending on the company, your premium will either not increase, or only suffer a small increase.
Your child must simply go to school at least 100 miles away from home.
Number Four: Good Grades Matter
If you have high-schoolers on your current family policy, encourage them to maintain at least a “B” average, so you will qualify for the Good Student discount. And they still get to live indoors.
Number Five: Okay, I Give Up. Get A Multi-Policy Discount
Purchase your automobile and home, renter, and condo or coop policies
from the same company. You’ll qualify for multi-policy discounts, which can save you at least 10% on each policy.
Number Six: Ask Your Agent For Help Before You Purchase
Before you actually purchase a car, call your agent and ask them to give you the symbol for the vehicles you are considering. One young lady was going to purchase a car with the letters “XL” in the model name. I told her the model with only an “L” was two symbols lower, which would result in much lower comprehensive and collision insurance premiums. The major difference between the two models of the same car? One had sun visors with extensions, and the other did not. So, she purchased the “L” model, ordered the fancier sun visors from the dealership, and installed them herself, saving a ton of money on her auto insurance.
Seven’s The Charm: Improve Your Credit
Improve your insurance credit score. The higher your insurance
credit score, the lower your premium will be. And do everything you can to
avoid having any of the “Five Deadly Insurance Credit Score Sins” on your credit report in the last five years.
The “Five Deadly Insurance Credit Score Sins” are:
d. Bankruptcy, or filed for bankruptcy
Always remember, ‘the higher your insurance credit score, the lower your premium’ and the reverse, ‘ the lower your insurance credit score, the higher your premium.’ Any of the “Five Deadly Insurance Credit Score Sins” can hurt your chances of qualifying for a lower automobile insurance rate.
Last But Not Least, Tip Number Eight: Skip The Coach Bags. Pay Your Premium
Lastly, whatever you do, never, never, never let your automobile
insurance, or any insurance policy for that matter, lapse due to the
non-payment of premium. This alone will disqualify you for coverage with
many preferred companies for several years.
Eustace L. Greaves, Jr., LUTCF is an independent insurance agent and broker based in Brooklyn, NY. Call him today at 718-783-2722 to make an appointment to check your home, auto, flood, renters, coop, condo, life, and disability insurance policies. You can also request a meeting or subscribe to his monthly newsletter by completing a “Contact Us” form at https://greavesinsurance.com.
You can also reach Eustace by sending an email to [email protected].