Auto Insurance: How To Save Your Money

Auto insurance is a fact of life for anyone who drives a car. To do without it could mean the loss of your license in many states and a bad financial and legal situation should you wind up in an accident. However, just because you have to carry it doesn't mean you have to pay out the nose for it. While there are benefits to going with an established and prominent company as opposed to a fly by night joint that might not pay up in the event of an incident, there are ways to save money. Here are some of the best methods.

Shop Often

Studies have shown that once a person decides on auto insurance, they are likely to stay with that company for a long time, barring mitigating circumstances (raised rates, refusal of coverage, etc.). While many customers may have a good reason for staying loyal, plenty of others simply stay because its easier. It may be easier, but it's probably not cheaper. By shopping once a year or so, you can find out if there are better options out there. Don't just re-sign your policy without calling around for some quotes.

Deductible

If you have the money to cover yourself in the event of an accident, you might want to consider taking a higher deductible in exchange for a smaller premium. Plenty of safe drivers with a decent bank account are paying far too much for their premiums. While no one wants to shell out thousands of dollars in the event of an accident, don't overlook the amount of money you might be wasting on a monthly basis. Money in your hands is always better than money in someone else's. If you raise your deductibles and put the extra money in some sound investments, you may find a much more amenable situation.

Double Up

If you have auto insurance through one company, renters or house coverage through another, and life through a third, you could be wasting money and time. Many companies offer multiple packages for various purposes. If you are willing to buy from a single company, you could be eligible for discounts you otherwise would not be. This is entirely aside from how much easier it is to handle bills from one company than several. Don't compromise your insurance coverage for the sake of convenience, but if it's all the same, it might be something to look into. At the very least, look at the companies you're currently using and see what else they offer.