Insurance is one of those things we hate paying for—having to fork over money for something we may not actually ever need can sting, especially if we not exactly flush with cash month to month. But, things like medical bills, and car accidents, can be very costly and an insurance policy is the only feasible way to cover these expenses. When it comes to car insurance, there are many ways to save on premiums and put some extra cash back in your wallet.
This tip may seem uber-obvious, but many people really do not take the time to compare prices. They make the assumption that all carriers probably charge around the same price for a similar policy and just go with the first one they find, or keep renewing their policy with their current provider. But, as someone who has engaged in a lot of comparison shopping for car insurance, I have found big differences between carriers, and I have obtained policies for much less than I thought I would.
Choose a High Deductible (with Caution)
The more you are willing to shell out on your own to cover damages, the less money the insurance company is going to charge you for their services. That is why the deductible amount you choose has such a significant impact on premiums. If you really want to make a dent in your bill, choose a higher deductible. But, do this with caution. Remember, while you hope you never need your insurance, you may one day. Proceed with caution when it comes to choosing high deductibles. Make sure it is an amount you can actually cover; and if it is an amount you could cover, make sure it is an amount you are comfortable with. If meeting a deductible means draining your entire savings account, this may not be the best move.
Consider Carpooling to Work
Insurance is all about risk and the more time you spend on the road, the more likely it is you will get into an accident. That is why there are rate differences based on how much you drive your vehicle. When I was living in the States and working from home, my car was used for pleasure and errands only. I saw significant drops in my insurance. Carpooling with others to work would have the same effect on car usage, and in some cases, may reduce rates by up to 25 percent. Each person can drive a one-week shift.
Re-evaluate Your Policy
If you just keep renewing your policy as it is year after year, you may be paying for coverage you really don’t need. If your car is no longer under payments, you may not need collision and comprehensive coverage any longer, or at least the same amount of coverage. If your credit has improved over time, contact your carrier for a revised quote if they use credit scores to calculate premiums.
Use the Same Carrier for All Policies
If you are using a different carrier for your auto insurance than your home or renter’s insurance, you are missing out on discounts. Referred to as ‘’multilining’’ in the insurance industry, carriers will give discounts when you have multiple policies under them.
Call Directly to Inquire about Discounts
These days most of us get our insurance online, and barring any problems upon review of your application in-house, your insurance policy will be approved. While many discounts are worked into the online information gathering process, it may not include all of the possible discounts you are eligible for. This makes a phone quote a good idea if you are really intent on saving as much money as you can.
Kelli Cooper is a freelance writer who blogs about all things insurance; she recommends visiting Kanetix.ca to compare quotes from Canadian auto insurance carriers.
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