If you have a car, then you know that you are legally required to have car insurance. So unlike other insurance policies where you can maybe opt out, this is not the case with car insurance. However, you so still have a choice on which car insurance might be best for you.
There are several ways that you can save money on your car insurance (without necessarily switching to Geico as the commercials say!).
SHOP AROUND
Finding the best insurance really is not that hard. With the internet as large as it is now, you can find everything you need to know on the company’s website. Insurance companies are all over the place; Geico, AllState, Progressive, etc. Just look at what each company has to offer and decide for yourself which one you think would be best.
KEEP YOUR CREDIT GOOD
Watch your credit reports to see what they say and make sure you are paying your bills on time. Although this may seem like a completely separate issue, the reason that car insurances may consider this as important is because they want to weigh the risk that you bring with you. Insurance companies want to be sure that you are going to be responsible.
DRIVE LESS
Often times insurance companies will offer you a discount if you drive less than other drivers they insure. Try using public transportation instead of driving everywhere. With the cost of gas being high, this may also prove to save you even more money.
DRIVE SAFELY
Lets be honest, talking on your cell phone, drinking a coffee, and driving all at once — not that safe! Make sure you are being responsible. Don’t put yourself and other at any unnecessary risk just because your hands and minds are anywhere else but on driving. It’s funny when I drive with my mum we can always tell when someone is on their cell phone because either they are being an inconsiderate driver, driving too slow, or driving way too fast. Also, avoid drinking and driving. You may think you seem fine, but even being a tiny amount above the legal limit can raise the cost of your insurance and put you in other trouble as well.
WHERE YOU LIVE
You will always pay more insurance if you live in an urban area vs. the suburbs. The likelihood of theft in a city is much more likely along with the chance that your car may be damaged. If possible, move out of the city, however, I know this is asking a lot. If you decide to stay in the city, you might as well just accept that you will be paying a little bit more towards your insurance and include this in your budget.
AVOID FLASHY CARS
Often times insurance costs more for red cars…the reason being: they are easy to spot as they speed by you and tend to get more tickets. The same is true for nice sports cars. My brother this morning was talking about how on business twice he got a Mustang when he was traveling on business and both times he got pulled over for speeding (luckily he didn’t receive a ticket!). If you do have one of these cars, try not to speed although I’m sure it is extremely easy in such a nice car!
I know that some of these may seem like common sense, but often times people do not realize why their insurance costs might be higher than their friends or family members. Just keep in mind what you can do to keep your costs low.
Photo: John Pilge
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