We taught our kids to drink water at restaurants and use coupons wherever you can – be good stewards. So my philosophy in selling insurance is simple, save people money where I can and they will tell their friends that I have a customer’s best interest at heart! Looking to save money on your car insurance, here are some things to try…
Review your deductible on both collision and comprehensive.
The thing is, the lower deductible you select on your policy, the higher your premiums will be. And in the opposite, the higher a deductible you agree to take on, the lower your monthly premiums will be. And sometimes the difference can be significant. Savings can seriously add up year after year. And if you have a clean driving record and you know you do not have a propensity for careless driving, then why not agree to an additional $100 or $200 on your deductible.
Note: Collision deductibles affect your rates to a bigger extent than comprehensive; you cannot control deer, rocks, and vandalism – so carry lower comprehensive deductibles and higher collision.
Do you even need collision coverage? I would hope you are not insuring a $2000 vehicle with $500 deductible and paying many hundreds extra per year. Look up your car’s value at http://www.kbb.com for help in making your decision.
Add an additional driver.
Here’s a little known fact that may surprise you. When you add another driver to your policy, you may actually lower your car insurance rates rather than raise them. You may also get a better rate class with an extra car that you own – driving “incidents” are often excused based on the number of both drivers and cars in the household.
Pay in Full, not monthly.
If you can afford it, do it. Many insurance companies offer meaningful discounts for paying your policy in one lump some – Allstate gives 8%. Many auto insurers also charge monthly billing fees just to send you a monthly invoice; this fee can be as much as an additional $10 a month, $1.50-$3.50 at Allstate. Get rid of that excess and pay it all up front. It’s one of the easiest ways to lower your car insurance rates.
This is not just a ploy by insurers to ask for more – it offers a real value. State approve all insurance rates and one that has been approved almost everywhere is allowing discounts for combining home and auto (and motorcycle, RV, ORV, boat, etc). Research shows that you are less likely to change insurers the more you have with them; that is a real value to them and they reward you with nice savings.
The easiest technology savings is to have your premium deducted from your checking or savings account automatically (we call it Easy Pay) – this not only gives you a discount but is a great way to protect your identity….and do you really want to be writing a check each month, buying stamps, and hoping payment gets there in time?
Many insurance companies use a simple device (Drivewise for Allstate) to reward you for safe driving habits. Saving 15% or more is not that difficult with potential savings up to 30%. For those who get nervous, ours is NOT GPS-enabled so does not track where you go – but your phone does!
Early signing (or Future Effective) is just getting a policy 7 days or more before you need it put in place and is a 12% savings with Allstate.
Ask for MORE!
Limited Tort / Non-Stacked UM/UIM (for our PA friends) – up to 40% discount
Homeowner – 3% discount, New Car – up to 13% discount, Defensive Driver – 5%, Smart Student – up to 10%, Responsible Payor – 5%, Prior Carrier – 3%, Anti-theft – 10%, Electronic Stability – up to 10%, Anti-Lock Brakes – 10%, Defensive Driver 5%, and more – these are PA discounts but many in Ohio are similar; we are licensed in both Ohio and Pennsylvania.