Ways to keep your car insurance affordable

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imagesIf you have been one of the unlucky ones to bear the brunt of financial hardships, it’s likely that you have considered options on how to save money on necessities such as health, life and car insurance. In America, car insurance is mandatory- whether you own, lease or rent a car. If you don’t want to consider selling your car just yet or if you can’t manage your day to day life without your car, you can at least look for an affordable car insurance to bring your monthly expenses down. It’s really not that hard. All you have to do is to keep in mind a few things that can really help you save your hard earned money and probably utilize it elsewhere.

First things first- while looking for a car insurance company, remember to shop smart and weigh all aspects before zeroing in on one. Go online, check out quotes by different insurance companies and find out who has the cheapest car insurance. The information about the company’s discount policy, reputation and services should not take more than a few minutes to get. Evaluate the options side by side and chose the company which suits your needs the best.

If you are a safe driver, or do not do too many miles on your car, make sure you mention this to your insurer. A clean history of no accidents or few parking tickets can bring you a considerable discount, as you are seen as a low risk customer in the eyes of the insurance company.  Also mention if you have fire alarms or any car safety devices installed in your car-this can significantly reduce your premium rates as you are perceived as a cautious driver.

To improve your insurance credit score, pay your bills on time, monitor your credit report and do anything you can to fix problems that could be lowering your score and end up with you paying a high premium.

If you have adequate emergency funds, then consider moving to a higher deductible, but only if you can afford it. Ask yourself if you will be able to cover the cost of the deductible before the insurance company payments come in. Be realistic and move to an amount which you know will not land you in debts in case of an accident.

Search for discounts and you can save a lot of money. Many insurers provide good discounts to senior citizens, online buyers, students with good grades, people with zero claims with their previous insurers and people who do limited miles a year.  Check with your insurer if paying your premiums in full, instead of monthly can land you with a good discount.  Also check for group discounts that are offered to various clubs, professional organizations and credit unions.

Try and get quotes from insurance companies who already are insuring something else for you. If you are their existing customer, chances are, they will offer you a multi package discount. For example, if you have home insurance from a particular company, you may want to call and ask if they can provide auto insurance as well. The industry values customer loyalty and do their best to retain existing customers, rather than have them switch companies and lose a customer.

There are chances that insurance companies will throw in a lot of benefits which you will not end up using in reality. So read the fine print of your policy and eliminate stuff you think you won’t need. Your insurer will know best and advise you on whether it can be beneficial in lowering your insurance premiums.


Mike is a professor of Financial Management and teaches at various colleges and universities across America. He has recently started writing for websites as he would like to spread awareness on finance, insurance and taxation, since most people have half baked information on these subjects. He writes about who has the cheapest car insurance, managing taxes wisely and growing your money. Also we recommend http://webuycarshere.com/



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