In an effort to save money on auto insurance, most people will shop around for the lowest quote they can find. People who are more dedicated to reducing their insurance payments will look over their policy and see what coverages they can save money on. Only the most savvy shoppers use these five tips.
Check the Medical Coverage
It might not be necessary to pay for an auto insurance company’s medical coverage, if one has solid health insurance through another company. This involves more than just looking at one’s auto insurance. It must be compared side-by-side with one’s health insurance. Any duplicate medical coverage can be declined in the auto policy.
Say “No” to Renewal Programs
Many companies are encouraging their customers to enrol in an automatic renewal program. These certainly are convenient, but they can be expensive. Automatic enrolment allows insurance companies to increase a policy’s cost after the policy’s expiration and then automatically enrol the insured in a new policy. The price jump has been, in some cases, significant. Of course, the companies must notify customers of these changes, but many people over look these letters or emails. Therefore, it is usually better to decline automatic enrolment and renew your policy manually.
Pay Off Credit Cards
Credit cards can indirectly affect one’s auto insurance premiums. Before they issue quotes, insurance companies run a credit check on their prospective customers. This credit report is used when determining a customer’s payment, along with other factors. By reducing credit card debt, customers can improve their credit history. This can result in lower premiums when shopping for a new auto insurance policy.
Exclude a Driver
Historically, insurance companies have excluded drivers who had extreme traffic violations, like drink driving. Some of the savviest shoppers, however, have begun using this technique to lower their insurance costs. When a driver is excluded by an insurance company, whether voluntarily or involuntarily, he or she cannot drive – at all. In return, when this is done voluntarily, the family does not need to pay insurance payments for drivers who are not driving. This is not a viable option in every area. Drivers should check with their insurer and ask if it is allowed by local law in their region.
Take Public Transit
By relying on public transportation, drivers can reduce the distance they drive each year. When done on a daily basis, this can significantly reduce one’s mileage. Some people who rely on public transportation might qualify for a reduce insurance rate, because they drive less than most people.
The best way to begin saving money on car insurance, regardless of where one is, is to shop around for affordable auto insurance. Once a policy is found, people can contact the insurer to ask about these methods of saving more money. With these suggestions, people can cut their auto insurance payments and save money throughout the year.
Ed Brohan writes for Cheap Car Insurance, which helps people find affordable auto insurance online.