On the surface, investing in any type of insurance—whether it is on a car, a life, or whatever you have—can be costly. It adds to the daily expense, ultimately affecting the way you budget on a day-to-day, a month-to-month, or a year-to-year basis. However, having sufficient insurance, in this case for your vehicle, can be both a wise and sensible decision.
For instance, when it comes to the logistics industry–or commercial truck insurance, in particular–the overall idea is to research and secure an appropriate policy that should cover all their needs. Strong Tie Insurance mentions the need for a reliable program that is specifically designed to meet the expectations of businesses, as well as save them from unforeseen and unwanted costs in the future. The key in all of these is to provide certainty to uncertain events, promoting undeniable peace of mind in the process.
Depending on a number of factors, car insurance premiums today differ in such a way that its flexibility can cover vehicle owners who have varying needs and budget. The general idea to save money on car insurance is to review your policy and make sure everything is in step with your personal preferences.
We have talked to some of our peers to know more about tips on how to maximize and/or reduce the bottom line of your auto policy. Here are their thoughts:
Earl Jones, Founder of Earl L. Jones Insurance Agency says:
As an insurance agency owner here in Sunnyvale, CA, here are tips I use to help save my clients money on auto insurance, without compromising coverage:
– Raise the deductible on auto insurance to $1000 this alone can save 10 percent to 15 percent on the insurance premiums.
– Bundle home, renters, condo, mobile home, and auto insurance together that will save 12 percent to 20 percent.
– Complete your insurance company’s annual mileage request and update those miles. If a person is driving less, they could save on their car insurance with lower miles. By not completing that form, the insured defaults to the standard 10k -12k miles annual miles.
– Sign up for the auto insurance company’s safe driving programs, if available in the insured’s state. This could be another 5 percent to 10 percent depending on the state and the company.
– If over 65, then take a defensive driving course and pass. This will save up to 10 percent for about 1 to 3 years depending on the state and the auto insurance company.
– If they have teenage or college student drivers on the auto insurance, inquire about good student discounts and student away discounts.
– Switch from automatic payment with a debit or credit card to direct debit from a checking or savings account. This can save $100 a year with a lot of carriers.
– If you can pay in full as mostly all insurance providers charge a monthly account fee.
– Switch to paperless billing and policies, as some carriers will charge a processing fee for sending bills and non-state required policy information in the mail.
Jacob Dayan, Chief Executive Officer and Co-Founder of Community Tax shares:
– Negotiate. Believe it or not, you can—in some instances—negotiate with your current insurance provider. You can suggest that you have been quoted lower prices for the same coverage and use that as leverage. Ask if they are maybe willing to work with you and play with their discounts to see if they can drop your insurance to a lower rate.
– Pay annually or bi-annually. A lot of insurance providers offer a slight discount if you pay in full annually of bi-annually. The discount is not large typically, but it is a discount, nonetheless.
– Shop around. This is the most obvious way to get a lower rate. It is painfully monotonous work, but it will typically leave you with a lower rate and in some cases better coverage. Just be prepared for the numerous follow up emails, phone calls, and snail mail you are going to receive.
– Increase your deductible. You will almost always get a lower monthly rate with a higher deductible. Consider raising it to see how much you can save. Determine a deductible that you are comfortable with paying should the worst happen.
– Research cars that are cheap to insure. There are many cars that are relatively new that are for some reason way cheaper to insure than comparable models. Trucks also tend to have much higher rates than cars.
– If you own multiple cars, consider listing the cheapest one to insure as your primary vehicle.
Nikki Webster, Founder and Travel Writer of Brit on the Move claims:
– Maintain great credit, as it directly affects what you pay in car insurance.
– Bundle insurance where you can. For example, if you combine your home insurance, car insurance, and other insurance needs into one single policy you can get discounts. The same applies to families. One policy for a family of four with two or more cars is always cheaper than a solo policy for each individual. In our house, we bundle most of ours except insurance on our boat.
– Consider insurance that is usage based where the carrier will track and monitor the miles. Based on how far you travel, and your travel habits (speed, stops and starts, indicating) you can qualify for discounts. The downside to this is if you are not a stellar driver it can have the opposite effect.
– Once your vehicle is at the point of your car’s actual cash value is low, get rid of collision insurance. For example, if your car is worth $2,000 and your deductible is $1,000, the max you will get paid is $1,000 and it is not worth it.