Car insurance is one of those things you have to have, but the cost can drive you nuts. If you are throwing your hands up in the air in frustration, you are making a mistake. Contrary to popular opinion, there are actual steps that you can take to lower what you pay.
I would like to tell you that I am a highly motivated person who always does what I should in my life. Doing so would be a blatant lie and probably end up with me being hit by a lightening bolt. When it comes to finances, however, car insurance is one area where you really need to pay attention to cost cutting. Why? Well, you have to pay for insurance every year so even small changes will save you a ton of money over the forty or fifty years you have insurance. This is all the more the case since most of the steps are very simple.
The first step you should take is to crank up those deductibles. The deductible is the amount you must pay before the insurance kicks in. Let's say that you get into a fender bender. It is your fault and the repairs cost $ 1,000 for both cars. If you have a deductible of $ 500, you must pay it and the insurance company will pay the additional $ 500. The higher you set the deductible, the less risk the insurance company has that it will have to pay. The smaller the risk, the lower your premiums will be.
Get a theft prevention and recovery device. Nearly every insurance company will give you a discount if you pick these up. Why? There is a much greater chance the vehicle will either not be stolen or recovered if it is. That usually means the insurance company will have to pay out less money. Once again we are talking about risk. The less of it, the less you have to pay. Make sure to ask for any other possible discounts as well. There are usually more than a few.
As odd as it sounds, the way you pay can make a difference as well. Many insurers will give you a discount if you set up an automatic electronic payment from your bank account. Why? Well, they know payment will be on time and they don't have the cost of sending out bills with postage and so on.
How much will the above cut your insurance premiums? It depends on your driving record and situation. The discount might be a lot or just a bit. Regardless, any savings you get will multiply to a large figure since you will be saving money this year and every other one that you drive.
