Kathleens Insurance Advice

If you’re looking to cut costs, you may be able to find some savings in your auto insurance policy. Many car owners have not reviewed their auto insurance policy in years and may be paying for coverage that isn’t needed. In this article we present 5 money saving tips to help you reduce your costs.

Auto Insurance Tip #1: Don’t Over-Insure
If you’re driving an older model car, it may not be worth it to pay for comprehensive and collision coverage. Here’s an easy way to determine what kind of coverage you should have. First, determine the blue book value of your vehicle. Then find out how much you’re going to pay in comprehensive and collision coverage this year. You can get the costs for these two items from your auto company. If one years worth of auto premiums for comprehensive and collision is more than your car is worth, you should absolutely drop them.

Auto Insurance Tip #2: Don’t Double Up on Services
Do you belong to AAA? Do you also have towing coverage on your auto insurance policy? Some cell phone carriers also offer a roadside assistance program. Funny thing is, there are many auto owners who have towing and roadside assistance through all three. Double check to see if you’re adequately covered for towing and roadside emergencies. If you have more than one policy, pick the one that’s best and cancel the rest.

Auto Insurance Tip #3: Update Your Driving Usage
Are you still driving the same amount you were when you originally took out your policy? If not you may be eligible for a discounted policy. Most policies are priced according to the number of miles you drive. If you’ve moved closer to your office or if you now work from home you may find that you can drop your insurance rates substantially.

Auto Insurance Tip #4: Ask for Discounts
There are a number of ways to receive a discount on your auto insurance policy. Are you taking advantage of all of them? A few of the more common types of discounts include: good driver discounts if you have had no accidents in the last 3-5 years, discounts for safety features in your car, senior discounts, discounts for having multiple cars or a homeowners policy with the same carrier. Some insurance companies also offer discounts if you belong to a particular organization – so be sure to ask what kinds of discounts your insurance company offers.

Auto Insurance Tip #5: Drive a Used Car
The most expensive premiums are always on new cars. If you’ve got your eye on this years model, give your insurance company a call for a quote before you purchase the car. The cost of the monthly premiums may have you rethinking your purchase. If you want to maintain reasonable auto insurance rates, stay with a car that is at least a few years old.

Review your auto insurance coverage on a yearly basis to be assured of getting the best rates. As your circumstances change, don’t hesitate to call your provider to see if you can qualify for a discount. Adding more cars, driving less, adding a homeowners policy and checking your coverage levels are all ways you can save big on your auto insurance.