6 Tips To Save On Car Insurance
As with everyone in the United States, you need car insurance. Why risk a hefty fine and a ticket just because insurance can be expensive? It’s not worth it. “But insurance is so expensive, and I’m not a perfect driver!” We hear you. We know. No one is perfect. But believe it or not, you don’t have to pay through the nose to have decent car insurance. How’s that? Here are some tips that can help you save money today.
1. Know what your state requires
Although nearly every state requires drivers to carry car insurance, keep in mind that there is a minimum to those requirements and it varies from state to state. For example, New Hampshire and Virginia don’t require insurance, but New Hampshire drivers must satisfy a responsible owner’s fee, and Virginians must pay an uninsured motorist fee. Make sure to do your research so that you’re not paying for coverage you don’t need or that you’re paying too much for the coverage you have. If you don’t carry the minimum required by your state, your car could be towed, your license suspended or revoked, and you could face a court appearance. Is all that worth saving a few hundred dollars a year?
2. Carry proof of insurance to avoid higher rates
What are the risks of not carrying car insurance? First of all, it’s illegal, and you’ll be fined for not having insurance, even if you’re only stopped for a broken tail light or minor traffic infraction that doesn’t involve other people. Secondly, if you’re in an accident, you’ll be responsible for paying the entire cost of damages, bodily injuries, and liability. Your wages could be garnished. You could lose your house. That’s how risky it is to not have car insurance. Also, be sure to keep proof of insurance in your car! Some states will void tickets when you can later show proof of insurance; others won’t. Don’t risk it.
3. Determine what provider you’ll use BEFORE purchasing new car
Insurance for a new car. Don’t think that you can skate by with driving your new car off the lot and home before you need car insurance. There are security videos from car dealerships that show drivers pulling out of the driveway in a brand new car only to be T-boned by a passing vehicle. You’ll need to show proof of current, existing insurance to get financing or even if you pay for the car in full and in cash.
4. Insure like you own a new vehicle
Even the oldest “clunkers” need insurance. Whether you buy a used car from a dealer or a private party, you’ll need insurance. In fact, used cars are even more vulnerable to physical problems that could be better covered by higher coverage insurance. Investing in liability insurance, comprehensive collision insurance or even full coverage insurance would protect you in the same way coverage for a new car would.
5. Research your demo
Know the different types of coverage and why they’re important to you and your driving situation. Just because your dad drives a 4-door sedan to and from work 100 miles a day with no accidents on his record doesn’t mean you’ll get the same or similar rate quote. Even if you have the same car, driving distance and driving record, you’re still in a different age group and maybe gender, both of which may affect your premium. You can cull this information from friends or the internet. And a note of caution: resist the idea of just going to an insurance agent to inquire about coverage – they’re salespeople and have a vested interest in selling you the most coverage possible. They’re not bad people; it’s just their job. Remember that.
6. Use online insurance providers
- Online insurance services, because they don’t have to pay agents or overhead on brick-and-mortar buildings to house those agents, can offer you coverage at deep discounts. Other factors that can lower your rates, even more, include your resident zip code, your age, driving record and even the amount of miles you drive per day. In some cases, if you drive fewer than 50 miles a day, it can substantially decrease your insurance premiums!
So what have you got to lose? Hit the web and chat with your friends and coworkers to start researching! Your family and your pocketbook will thank you.