This is a guest post by Tom Richards. Tom is a risk management specialist who provides tips on finding the lowest car insurance coverage at Cheap Car Insurance Outlet.
Car insurance is an expense we all need to deal with on a continuing basis. If we don’t pay close attention it is easy for us to pay more than we need to. To save the most money on the cost of auto insurance we will look at 3 of the best areas where we can save as much as $200 a year on our car insurance.
1) Mileage Makes Insurance a Variable Cost
It is only naturally we should expect our insurance cost to be reflective of the amount of miles we actually drive. The cost we present to insurers should be less as the risk of getting in an accident or filing a claim drops as we drive less. In the past our car insurance has mostly been a fixed expense where our 6 month policy stays the same. This is starting to change as more and more insurers are adopting usage based technology which easily allows for your mileage to be tracked. Insurers such as Progressive and GMAC claim savings as much as 50% by paying based on the amount you drive and more and more insurers are adding usage based programs. A good way to save 10-20% is focus more on your mileage and look for insurers who will reward you. Possibly you are able to car pool to work a couple days of week or take public transportation? Maybe we can arrange errands in one trip or work from home so we drive fewer miles? An additional benefit of lowering mileage is we will see a drop in other expenses such as gas and upkeep to our cars.
2) Take Advantage of Discounts
Most vehicle insurers will offer a vast array of discounts to lower your car insurance expense. A couple of discounts to pay close attention to relate to the way you pay your bill and if you are consolidating your insurance coverage with one provider. Since interest rates are so low it makes sense to pay your 6 month policy in one payment as your cash will be earning little in interest. Many insurers will offer discounts as much as 10% by paying your bill in full when signing up. Additional savings can be achieved by asking your insurer if they offer 12 month policies. Paying up front for a longer period of time can add to these savings. For those on a tighter budget and needing to pay in installments look at no down payment car insurance strategies to make sure you are not being overcharged. Another good way to save is to combine your insurance policies with one company. By grouping your life, home and auto insurers will reward customers will savings as much as 10%.
3) Shop Around
The easiest way to save as much as 20% or more on car insurance is to shop around. There are several reasons, such as the value of our car drops, our driving record improves or we haven’t been filing claims, which will all help decrease the risk we carry as a driver. Many insurers will not reward your risk reduction and will keep prices at the same level. Getting quotes on the internet will take only a few minutes and is a great to lower your car insurance.