We are thankful for our insurance policies when we need them, but before we make a claim, insurance costs can seem like a hassle. Sure, everyone needs insurance, but it can be difficult to really see what it is doing for you on a day to day and year to year basis. While insurance is a necessity, you don’t want to pay more for insurance than you need to protect yourself, your family and your car. It is worthwhile to look into ways you can spend less on car insurance and save money to purchase things you need and enjoy.
Types of Auto Insurance
Before figuring out how you can save on premiums, it is important to be clear on the different types of auto insurance. Collision coverage pays for damage to a car even if a collision was your fault. Comprehensive insurance will pay for repairs on things that were not caused by a collision, such as damage due to fire or an animal. Property damage insurance will reimburse the costs of property destruction caused by your vehicle. You can also get specific insurance to cover medical expenses of other people injured or for yourself. Finally, there is insurance to cover damage caused by an uninsured driver.
How You Can Save
Look at the various kinds of auto insurance available and think about where you can save money. For instance, if your car is older and is paid for already, you may not need to pay high collision insurance premiums. Comprehensive insurance is worthwhile if it is 10% or less of the car’s Blue Book Value. If you have a clean driving record, you can pay less on car insurance, and if you have had a traffic violation, you can raise your score by attending defensive driving classes. For Phoenix auto insurance savings, find out what is available in your area.
One way you can reduce your premiums is to raise your deductible. This means that you will have to pay more out of pocket if there is damage until the insurance will start to cover it, but it may be worth it if you pay less per month in premiums. However, if you feel that you wouldn’t be able to afford to pay much out of pocket after an accident, you may want to consider keeping your deductibles low. Asking about discounts is another way you can save on auto insurance. You may be able to pay less if you have anti-lock brakes, are a veteran or do not drive your car to and from work. It may also be worthwhile to stick with your older car rather than purchase a new, bright red sports cars. A flashy car may mean higher premiums.
You may be able to find bargains on auto insurance yourself, but the process can be easier and you may save more money if you work with an agent who can find the lowest rates. Discuss your lifestyle and needs with an agent who can browse through quotes to find the best deal. Agents charge fees, but in many cases, the fees are worth the investment and yield lower premiums.