Looking to save on auto insurance? Whether you’re reviewing your current policy or purchasing a new one, choosing your coverage carefully can save you a bundle.
Don’t skimp on the basics.
The most important coverage is your state’s minimum liability and property damage coverage. You need to maintain liability and property damage car insurance so you can legally drive. You’ll also need to decide whether to add additional property coverage not required by the laws in your state.
Important property coverages where it doesn’t pay to skimp include:
- Comprehensive coverage, which covers damage from anything other than a collision. It includes but is not limited to deer, glass damage, fire, theft, vandalism, and storm damage.
- Collision coverage which covers damage to your vehicle from a collision whether it is with another vehicle, or something else like a tree.
Be strategic about your deductible.
Your deductible – the amount you choose pay out-of-pocket before the insurance company steps in – is a key factor in determining your insurance premium. While a lower deductible may seem appealing, it’s tied to a higher premium. Since claims are usually infrequent, chances are you will pay many times your potential savings in monthly premiums over time. If you could afford to pay the first $1,000 to $1,500 in repairs yourself, choosing a relatively high deductible will probably save you in the long run.
Don’t underestimate the value of customer service.
Yes, you are looking for low-cost coverage, but should an accident require the use of your auto insurance, you’ll want good customer service. Some insurance companies handle the claims process much better than others and respond much quicker with claim payments, so include customer satisfaction in your research. Quality customer service could very well mean money in your pocket sooner.
Choose your extras carefully.
Optional extras like rental insurance and roadside assistance may be important to some people depending on their situation, however they tend to cover inexpensive claims. You may end up saving more by covering these expenses out of pocket or through your credit card company rather than purchasing the coverage with your auto insurance.
Look for discounts.
Seek out discounts you or family members may qualify for – like safe driver and good student discounts. And finally, consider bundling your auto, homeowners and other insurance policies together. Purchasing coverage together with one company could save you quite a bit of money every month.