For those who are looking to save some money in the new year, it may be beneficial to research some ways to reduce the costs of car insurance premiums. There are a variety of ways to pay less money each month. The following are some ideas to consider implementing in order to reduce monthly spending:
Liability Coverage on Older Vehicles
For anyone who has older vehicles, carrying only liability insurance is one way to reduce premiums. This is especially helpful for those who have older vehicles in addition to their vehicles used for primary transportation. Removing the collision and comprehensive pay can be a good way to reduce spending, particularly if the value of the vehicle is low. It could be that the cost of insuring the vehicle is higher than the replacement value.
One main consideration with this idea is whether or not there are payments due on the car. For anyone who is still financing, the agency may not allow a drop in coverage until it is paid in full. Also, if there is no way to replace the vehicle in the event of a crash, full coverage may be needed until funds are in place to do so.
Inquire About Safe Driver Discounts
Many agencies will offer discounts to those who have a clean driving record. These discounts are typically provided to those who have no tickets or accidents on their driving record in a specified timeframe. In addition, drivers should not have made any claims for comprehensive repairs, such as broken windshields.
Ask About Discounts for Good Grades
For those with children of driving age, a good report card can prove to be beneficial with regard to insurance costs. Discounts are often provided to kids who maintain a certain grade point average. The amount of the discount will vary from agency to agency. Also, the insurance agent will likely ask for proof of grade point average from time to time, so be prepared to provide that information on a regular basis.
Do Not Drive As Often
For those who are at a point in which they are not driving as often as they used to, agencies may provide a discount for doing so. If driving less is not an option, there still may be options to attain this discount. This can be done through carpooling or traveling using public transportation. This not only accomplishes the goal of spending less, but it will also save money in fuel costs, maintenance, and repairs on a vehicle. For those interested in this type of discount, the agency may require a device to be placed in the car to track mileage. Alternatively, the insurer may request a manual report of mileage on a regular basis.