Saving some money on Car Insurance

know your coverages....lot of us buy insurance and keep sending in the checks to renew the policy without ever reading the coverage we bought. Not cool!!! its important to know your coverages and your deductibles.

...why? Simple. It can save you. Save you from spending a fortune if you are under-insured and save you some money if you are over-insured. Lets look at how it can save money.

coverage amounts....discuss with your agent what the right coverage amount should be depending on your overall financial exposure and value of the car. They are best at this and you are paying them to guide you, so why not use the expert.

deductibles....depending on your driving habits and mindset, you could always consider higher deductibles which should lower the premiums.

discounts....we all love discounts and insurance companies have so many, there is a big likelihood, you qualify for one or more that have not been applied; examples include - home, multiple cars, safe driving record, age, low mileage (if you are driving less, that should help), education (cleared HS, got a degree etc), credit union membership, costco or sam's club membership, car features (new alarm system, ABS) plus lots more

shop around....this might help, might not. If you have a clean driving record last 3 years, chances are you will get good competitive offers else remaining faithful to your current insurance provider might be the only option.

premium revision....happens all the time with insurance companies. They re-evaluate their premiums but most do not pro-actively communicate it to you unless you are up for renewal. In some cases, the agent may not pass along the lower premiums. So call, find out when the last premium revisions were done and if your agent can look at your policy and work their magic.

paying your premium....insurance companies tag a surcharge for paying monthly or in installments which can add up. This is over and above your premium so if you can, plan to pay for 6 months at a time. You can always cancel a policy and get your money back on a pro-rated basis if needed.

moved residence....insurance premiums vary by zip code. Not only is it important to keep the info on your policy current but if you moved to a new residence, started parking your car in a garage etc, it can help a little bit.

Lastly....you will not get anything if you will not call. So call your agent and ask for help trimming your premiums. A 15 min conversation can save you atleast $50-$200 every 6 months, not much for some, but over time we will find multiple such small saving opportunities which will add up. Thats what this is all about, isn't it?


Additional info:
http://articles.moneycentral.msn.com/Insurance/InsureYourCar/12hiddenWaysToSaveOnAutoInsurance.aspx
http://www.foxbusiness.com/personal-finance/2011/01/12/silly-ways-waste-money-auto-insurance/
http://frugaldad.com/2010/03/03/save-money-on-car-insurance/