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How To Save On Car Insurance

Few bills bug me as much as the ones that you do not get anything from. Insurance is one such bill. I never say to myself, “I really enjoyed the car insurance this month.” You get enjoyment out of your mortgage payment because you have your home. Your internet bills let’s you stream TV and, of course, blog. But insurance, there is just nothing tangible about it.

It is these pesky little bills like insurance that I strive to pay the least on. To that end, here are some ways that you can shave some dollars off of your monthly auto insurance bill. Save on your car insurance bill and help balance your budget.

Shop It Around

This seems so obvious, but nobody does it. Yes, it is a pain to call around for quotes, but the insurance companies save their big discounts for new clients. They want to lure you in so that they can nickle and dime you in the future. The first year will be good though.

Call at least three auto insurance companies and get a quote. You will likely find at least one offering a new customer discount. Take it and save big in the first year. The next year they will likely increase your rates but all you have to do is go shopping again. Nobody ever said saving money was going to be easy.

Ask For Discounts

There are more discounts out there than you probably know about. A quick call to your agent to inquire about them could save you hundreds of dollars a year.

Some examples of discounts include safe driving discounts, multiple policy discounts and, if you have a kid, you might even get a discounts for their good grades. If you are military or a first responder, also ask if there is any money to be saved. Agents will not always offer all the discounts available, you need to ask.

Be sure to also ask about driving distance savings. With many people now working from home, you may be able to save. Tell your agent how many miles that you drive and see if they can give you a discount. If not, shop for another agent.

Raise Your Deductibles

Sometimes the difference between a $500 deductible and a $1000 one can be significant. You might even save $500 in the first year, effectively negating the extra money that you would have to pay in the event of an accident.

Raising your deductible to $1000 is like betting on yourself. You are still protected in a major loss, but you are betting that you will not get in a minor accident where a $500 deductible would be preferable.

If you decide to go this route and you are financing, be sure to check with your bank. Many require the lower deductible to stay in compliance.

Improve Your Credit Rating

Like it or not, your auto rate is probably based in part on your credit rating. Somewhere along the line some of the statistics started showing that those with lower credit scores got into more accidents. Fair or not, it is how it is.

Improving your score can get you a better rate next time you shop for auto insurance. Luckily, the key to good credit is no mystery. While there are a lot of factors that affect your credit, two of them represent almost 2/3 of your score.

The first is on time bill payment. Simply pay your bills on time and your credit will improve. Of course this means bills like installment loans and revolving credit. If you do not have these kind of accounts, you need to get them.

For the second factor, you have credit utilization or how much of your revolving credit you are using. This means credit card debt. You want ot be using less than 30 percent of your available credit to be considered good. Less than 10 percent is excellent.

Pay In Advance

One last way to save on your car insurance is to pay it all in advance. Many, but not all insurance providers will give you a discount if you pay your entire years premium at once. This could amount to a 20 percent discount on your annual policy.

While it might seem extreme to pay over 1000 dollars to pay off your insurance in one lump sum, it might make sense. If you pay your premium on a low interest credit card, you could come out far ahead. Just do the math.

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