Insurance Savings for Vehicle Policies

If you need to reduce your monthly budget, making a call to your current automobile insurance company and asking for a policy review can often help you stretch your dollar. To begin, the largest savings may come from lowering the deductable you carry. A deductible is the amount of “out-of-pocket” money you will pay in the event of an accident before your insurance will take over the costs. Deductibles are usually offered in amounts of $100, $250, $1000 and sometimes $2500, and as the deductible raises, your monthly premium drops. It depends on the vehicle you are insuring and perhaps on if you are accident prone, but the premium difference between carrying a $100 and a $1000 deductable on your policy is significant. If the idea of paying $1000 is daunting, consider first saving that amount in an accessible savings account before changing your policy; if there is a claim against your policy, you will have the money to pay the out–of-pocket costs.
Keep up with the value of your car, and make sure that as the value decreases that your coverage decreases. You must have minimum coverage on your vehicle, and if there is a lean against your vehicle (i.e. you are still making payments on it), your lean holder will require that you carry full coverage; however, once you have paid off your existing loan, consider what full-coverage really means. Totaling your vehicle means that damage has occurred that will cost more to fix than your car is worth. If your car is worth $3000, you will only get $3000 to replace your car, so in some instances it is cost-effective to carry only liability or minimum coverage; if you are able to manage the money you save, a few years worth of lower premiums will outweigh the benefits of a full-coverage policy.
Several other discounts can help you save on you premiums and therefore your overall budget. Ask your company about group discounts that may apply to you such as those given to military members, good students, retirees, etc. Those who bank fewer than 10,000 annual miles are also given a discount because they are a low risk to the company.
Lastly, different states, different zip codes even, can have cost differences, so be sure to inform your insurance company when you move. This may raise or lower your premiums minimally, but it is imperative, and perhaps in the event of a claim, money saving to be insured under the correct address.