Ways to lower your insurance cost

  • Keep your driving record clean. Don’t get tickets or cause accidents. Tickets and at-fault accidents on your driving record can drive you insurance costs way up.
  • Do you really need collision insurance? If you have an older car, or one in poor condition, you may not want to pay the price for collision coverage. Call a bank or finance institution to find out the price you would get for your car on a straight sale. Take this price and subtract what you would have to pay (the deductible) if you had a loss. Then subtract the cost of insurance for one year. The amount you come up with is the total you would actually net if your car was totaled.

Other types of insurance protection that are probably unnecessary include:

  • Glass breakage coverage can add up to 20 percent to your comprehensive premium. When it’s not built into the premium, avoid it.
  • Medical-payments. They pay the deductibles and co-payments not covered by your health insurer, or the insurer of any of your passengers. It also covers some funeral and rehabilitation costs. It’s not useful unless you face very high health-insurance deductibles. If your state requires it, buy the minimum.
  • Towing and labor only pays if you can’t drive your car away from an accident. Members of auto clubs with such privileges don’t need this coverage.
  • Rental insurance costs only a few dollars per year. But if you can depend on another car in a pinch, spare the expense.
  • Choose a higher deductible on your collision or comprehensive coverage. The higher the deductible, the less insurance coverage will cost. Be careful though to never have a deductible higher than you can swallow if you do have a claim.
  • Let your insurance agent know the safety features in your vehicle. Most insurance companies give you discounts for such safety features as air bags, theft alarms, and anti-lock brakes.
  • Coordinate any benefits from health or accident insurance with your auto policy. Some states have laws that require an insurance company to offer a discount on their insurance if you coordinate your other health insurance or sickness-accident benefits with your auto policy. To coordinate your sickness or accident benefits means that if you have an automobile accident, your auto policy pays you only for that part of your lost wages and medical expenses not paid by your employer or your sickness-accident insurance policy. Because your auto insurance pays less in claims, your insurance cost is lower.
  • Get a quote now. You may save money that way!