Insurance Tips to Keep Costs Down

Relief at the gas pump seems to be a pipe dream. Prices are rising and drivers are rethinking budgets to accommodate. One way to help save money is through your insurance.

According to certified financial planner Rick Rodgers, car insurance can be a good place to start saving money.

The average annual insurance premium is $850 and Rodgers offered some tips to meet or beat that rate.

Shop Around:

“Your insurance agent doesn’t have a lot of incentive to reduce your premiums,” Rodgers said. He encourages car owners to look around at other insurance agents who will be happy to provide you with lower rates.

Thanks to the internet and the growing insurance industry, it’s easier to compare rates than ever before. Rodgers said he knows someone who saved $1,600 on his premiums by switching agents.

Bundle Up:

Most insurance providers offer discounts when you package more than one of their policies and can be between 10 to 15 per cent. The most common way people bundle policies is by combining can and homeowner insurance. Some companies even offer bundles with renter’s or tenant’s policies.

 Ask for Discounts:

All those safety features in your car might make you eligible for some insurance discounts. Its worth a shot to ask what discounts you’re entitled to, especially if you have a good driving record, or low annual mileage.

Defensive Driving Lessons:

Defensive driving lessons are an important way to keep your skills sharp, even if you’re an experienced driver. Insurance companies see the value in taking a refresher course, and many offer discounts if you participate in one. Also, if you’re older than 50, there are additional driver safety classes that lower your insurance.

Increase your deductible:

A low deductible may seem like a good thing, but if you increase your deductible, you can manage to get away with cheaper insurance. Rodgers encouraged those who have bundled home and auto insurance to consider raising the deductible on their home insurance, as  statistics show the average homeowner files a claim only once every nine years.

Change cars:

Probably the most difficult, yet most effective way of lowering your insurance is by changing your vehicle. We’ve covered the most, and least expensive vehicles to insure on our site before, and if you’ve clicked through those lists then you’ll know, the big flashier cars cost more than boring, practical vehicles like pickup trucks and minivans.

Don’t forget to get a quote before making the switch. In some cases a compact can actually cost more to insure than a hot little roadster. You can also visit our car insurance page to get more information on different insurance providers.