Auto insurance is more expensive than most people would like, but many continue paying the same rates year after year without ever taking action to get a lower premium. Here are a few tips to help you lower your insurance premium and hopefully get the cheap car insurance you always wanted.
One of the best ways to obtain cheap car insurance is to do your research before agreeing to work with one company. Just like anything else, prices for insurance fluctuates by the company that you deal with. That means by simply calling several offices, or looking around on the Internet you should be able to find a range of pricing options and some much more affordable policies than what you might have ended up with by going with the first option.
Know Your Insurance Requirements
Insurance requirements vary depending on which state you live in, and it’s important to understand what your local requirements are before you pick a policy. You could be spending more than you have to obtaining coverage well above the rate that you truly need to be compliant. Take the time to learn your state’s requirements and you can pick a policy that makes sense for you.
North Carolina Insurance Requirements
As a resident of Raleigh North Carolina, there are three major liability coverage limits that you have to be aware of. As long as you meet at least these limits your vehicle is legally covered as much as it has to be. You need $30,000 for bodily injury liability per person in an accident. You also need at least $60,000 in liability for bodily injury as a total amount for each accident. Finally you have to have an additional $25,000 in coverage for property damage liability for every accident. As long as you meet these requirements you don’t have to purchase a policy in excess of this, but you could end up having to cover the bill if you get into a very serious accident at some point with a policy right on the legal borderline. A great Raleigh car insurance company we found to help us get through our tight budgeting needs is Insurance Doctor.
Virginia Insurance Requirements
In Virginia you have three liability coverage amounts that have to be included in your policy for it to be legal. The first is $25,000 toward bodily injury or death of a single person involved in the accident. An amount of $50,000 must be available for liability purposes to cover two or more individuals involved in the accident. You also need $20,000 in liability coverage for property damage to pay out to cover any damage you do to someone’s vehicle or personal property. If you find yourself needing car insurance in Virginia then check out Insurance Doctor of Richmond VA.
Raise Your Deductibles
The deductible is the amount of money that you have to pay during an accident before your auto insurance kicks in. Raising this amount means that you have to have more money available to cover an accident, but it will lower your insurance premium considerably. Consider bumping your deductible up from low levels like $100 or $250 all the way up to $1000. You could reduce your policy cost by as much as 25 to 40 percent by making this change.
Don’t Worry About Collision on Older Vehicles
If you drive around an older vehicle without an auto loan that you aren’t that worried about replacing in the event of an accident you can obtain cheap car insurance by getting rid of collision coverage entirely, or lowering your level of coverage. It’s important to realize that if you do this you won’t get any money to help you pay for your vehicle during an accident, you will have to cover the costs for repairs or replacement out of your own personal money.
Look for Low Mileage or Group Discounts
Many infrequent drivers pay much more for insurance than they have to. Always ask about any low-mileage discounts available when negotiating your auto insurance policy. If you drive your vehicle less than 5,000 miles a year you could qualify for such a discount and get lower rates on your policy. Even if you aren’t a low-mileage driver you might be able to save by grouping several insurance policies under the same provider. If you have home, life or additional vehicle insurance policies look into going with the same company for your other vehicles as well. You’ll typically receive a group discount that lowers the rate of all your policies and can result in major savings.
By following these tips you should be able to lower your insurance premium by at least a bit. While most of this advice is pretty straightforward, hopefully a few of these tips give you something to think about and help you save some money.