Useful Tips » 5 Great Ways to Get Cheap Auto Insurance
#1: Drop Unnecessary Coverage
When you pay for auto insurance, you are paying for the types and levels of coverage you are getting. So, naturally, you will save money by dropping coverage. But you can't drop just any coverage, since a lot of it is really important.
When can you drop coverage? When you don't really need it. Protecting the financial and physical well-being of yourself and your family are most important, and if a coverage doesn't do that—DROP IT!
Redundant coverages are first. For example, if your family is covered by a good health insurance package, you don't need Medical Payments coverage.
Common examples of unnecessary coverage are comprehensive and collision packages. If you drive an old vehicle that isn't worth repairing or replacing should it get serious damage, why should you pay for insurance that does so? You shouldn't!
#2: Increase Deductibles
Premiums and deductibles are tied together. When one goes up, the other goes down. Increasing the amount you pay out-of-pocket, the deductible, means that the insurer is required to cover less and will charge you lower premiums.
Just make sure that you can actually afford the deductible. Keeping the money stashed away in a savings account is a good idea.
Some modern electronic devices are saving people a lot of money on auto insurance. They do this by improving the safety of the vehicle and reducing the risk of collisions. Sometimes they cost a bit up-front but will save you in the long-run, and others make up their cost right away by getting you cheap auto insurance.
Here's a quick rundown of the best out there:
Blind spot cameras - These give you live images of those areas around your car obscured from vision. This means that, during turns and lane-changes, you are less likely to hit another vehicle.
Backup sensors - It's hard to see where you are reversing, so a lot of people bump into vehicles, curbs, trees, and more. Eliminate that with a camera or a sensor that beeps when you are close to an object. It makes parallel parking so much easier!
GPS - Wandering around and looking at maps while driving increases the risk of crashes and costs you gas. GPS systems have proven to reduce the chances of collisions. You can even get discounts for them.
#4: Security Features
Theft is a big threat to your insurer, since they have to either replace or recover the vehicle. Use alarm systems and electronic recovery systems to make the chances of theft lower and recovery higher, and you will pay less for insurance!
LoJack -- Helps law enforcement recover vehicles for a low price.
Alarm Systems -- Scare criminals away.
OnStar -- Reports theft to police and tracks vehicle with satellites.
Even before you sign with an insurer, think about discounts. Ask, since they don't always give them automatically.
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