Even “professional” shoppers cringe at the thought of shopping for new car insurance, often suffering under the misconception that, despite their best efforts, they’re never going to save any money. Wrong! Here are a baker’s dozen tips for saving money on your new car insurance policy.
1. Drive safely. Sounds a little too obvious, but the fact is, your driving record, good or bad, plays a significant role in the cost of your premium. Tempting as it may be, not disclosing a ticket or two is reason enough for an insurance company to reject your application.
2. Choose a car with a lower profile. The difference between insuring a Hyundai and a Corvette is considerable. Before you buy the car of your dreams, check the insurance rates for each.
3. Consider installing anti-theft devices. Your insurance company wants to know that you’ve taken a proactive role in securing your car. You should know that it’s considerably more expensive to have your dealer install them, than it would be a third party.
4. Reconsider buying add-ons such as spoilers and custom exhaust, etc. Yes, they look nice; but what they cost you initially will be no where near what you will be reimbursed by the insurance company, if you file a claim.
5. Adjust your thinking on deductibles. Your deductible and premium are inversely related; you could raise your deductible and put the premium cost savings aside, just in case.
6. Drop comprehensive/collision coverage on older vehicles; the rule of thumb is, if your vehicle is worth less than 10 times your premium, drop the coverage, because you’ll never recoup the value.
7. Watch your credit report; when buying insurance for the first time, or when you adjust your insurance needs, the insurance carrier is permitted to use your credit report as a basis for your premiums.
8. Buy car insurance from your home insurance provider. Often buying an umbrella policy will result in a combined savings of about 10-20%.
9. Ask the insurer if they give discounts for completion of safe driving or defensive driving training.
10. Don’t pay your premiums monthly; an installment and processing fee is usually included in monthly payments. Whenever possible, pay on a semi-annual or annual basis.
11. Ask the insurer if they provide discounts for low-mileage usage. The less you drive, statistically, the less likely you will be to get into an accident.
12. Ask the insurer if they offer discounts for membership in certain societies, civic organizations, alumni associations or clubs. Also, some professions and classes of individuals (i.e. retiree) may be considered “low-risk” so be sure you ask about that, as well.
13. Shop for your insurance online, where you can compare costs and services.
