You will generally get some significant discounts from the large insurance providers if your entire household is covered under one policy. If everyone is on one policy you can save hundreds or thousands of dollars a year.
If you modify your car, make sure to hold onto any receipts or records detailing the additions. Official proof, such as receipts or work orders, will be required to prove it to the insurance company. You should ensure that your insurance coverage is sufficient to cover any expensive accessories or modifications on your car.
You should always maintain records of all the insurance bills you have paid. Have this record on hand to show an officer of the law if you are stopped for a violation. It will be proof positive that you do indeed have current insurance on your vehicle.
If you sell or get rid of a vehicle, remove it from your policy right away. Carrying insurance that you don’t need can cost you money, so make sure to handle this quickly.
When you buy auto insurance, remember that the insurance carrier is insuring just the person who is listed as the driver, or operator, of the vehicle covered by the policy. If you allow someone to drive your car, and they were to get into a car accident, the insurance may refuse to pay. You might have to get an addition to your coverage to allow for this.
If you want a lower premium then you should think about paying a higher deductible. Raising the price of the deductible on your policy has the largest influence on the cost of your insurance. Of course, you will be held responsible for paying the deductible if you are involved in an accident. To cover the cost of that accident, having an emergency fund in place will be helpful.
Check your state’s auto insurance laws and requirements to understand what you do and don’t need in terms of coverage. Every state has different laws and requirements when it comes to insurance, so you need to make sure you fully understand exactly what you need when you go to purchase an auto policy.
You may not want to buy after-market add-ons if you don’t need them. Luxury items are nice, but they really aren’t that necessary. If your car is totaled or stolen, your insurance will not reimburse you for the damage done to it.
Lying will not help you out, and a typical insurance company has the right to drop your coverage during the first 2 months (60 days). The insurer will then look at your record to ensure that you are not too high risk. You might have higher premiums in the future if your policy is terminated.
Drivers who have a short commute, or drive infrequently, can qualify for a discount on their insurance. You should get this discount if you drive less than 7,500 miles every year. If you take the bus or train instead of a car you may get a commuter discount.
Keep your car premiums low by staying cautious while on the road. If you are able to go for long periods of time without getting a ticket or having an accident, you will probably by eligible for safe driver discounts. This savings can really add up over time, and you may even get a larger discount every year you do not get into an accident or get a ticket. This also prevents your monthly premiums from increasing.
Don’t share cars among family members, as this will increase your premiums. Typically, you will get a better price by only having one name attached to each vehicle.
Never drive without having auto insurance. Having auto insurance can protect your finances, should you be in a car accident. The tips above are meant to be used as a guide, to assist you on your journey to finding the right auto insurance plan for you.