I was recently interviewed for an article on saving money on car insurance by Newsday (NY). They were asking insurance experts on the best strategies for saving money. I will share my response with you for your benefit…
My strategies on saving money on car insurance:
- Increase your physical damage (comprehensive and collision) deductibles, especially for luxury and high-priced vehicles. The premiums are based on the value of the vehicle, so the higher the value, the higher the premium. Increased deductibles ($1000 and up) will save on insurance premiums.
- Avoid moving violations and at fault accidents. I know this might seem obvious, however driving behaviors can be modified to reduce the risk of tickets and accidents. Insurance companies do experience rate and even two tickets can have a dramatic impact (negatively) on your premium. Bottom line – have a “clean” driving record and your premiums will be optimized.
- Competitively shop your insurance at least every 3 years. This can either be done on your own or through your insurance agent. Jumping ship from your current insurer for a few bucks is a bad practice. However, it is important to see what the market is doing based on exactly the same coverages. 2-3 years is a good timetable to do this.
- If you have young drivers, make sure they have a good grade-point average (3.0 and better). Good student discounts can be as significant as 30%.
- Don’t double spend. If you have a service like AAA, you don’t need to purchase towing on your vehicles. You may not even need rental reimbursement if you have several cars. Even though the premiums might seem low, if you’re never going to use them, why buy them?
© 2013 Dan Weedin. All Rights Reserved
