Continuing from a previous blog, here are four additional options to consider, if you’re looking for ways to save money on car insurance. Check out Part 1 of “Tips to Save You Money on Auto Insurance” if you missed it, for tips 1-4!
5. Think about the future cost of insurance when you’re shopping for a car.
What do you consider when purchasing a car? You probably know to factor in things like size, fuel efficiency, gas prices, tech features, safety features, aesthetic features, and repair costs for those features. However, do you think about insurance premiums and monthly rates? All vehicles are not created equal, and some cost much more to insure than others. The top selling cars with the lowest rates to insure are the Honda CR-V, Jeep Cherokee, and Subaru Outback.
6. Don’t purchase collision or comprehensive coverage or an old vehicle.
Collision coverage exists in order to cover repair costs should your vehicle be damaged after a collision with another vehicle or object, like a wall, post, or fence. Comprehensive coverage covers repairs to your vehicle from damages due to weather, animal collisions, fire, flood, vandalism, or car theft. The maximum payout for either policy, however, is limited by the value of the vehicle should it be totaled or stolen. If you have an old vehicle with a low market value, you won’t receive very much compensation in the event one of those things occurs. You should consider this when deciding whether or not it is worth paying each month for collision and comprehensive coverage.
7. Think about increasing the amount of your deductible.
If you decide to purchase comprehensive and collision coverage, you can choose higher deductibles in order to save money on your monthly premiums. This means, you pay less each month, but are responsible to pay more before insurance contributes, in the event of a claim. Liability insurance covers the damages you cause the other party to an accident, and has no deductible.
8. Consider pay-per mile, or usage-based insurance.
If you drive safely, don’t drive a lot, or both, you may want to think about a usage-based insurance policy program. You’ve probably heard of some of these programs from large insurance companies’ advertising. They include Progressive’s Snapshot program, Allstate’s Drivewise program, and Statefarm’s Drive Safe & Save program. By selecting a program like this, you allow your insurance company to monitor your driving, in exchange for discounts based on how much, when, and how well you drive. Another option to help you save money each month if you drive less than 10,000 miles per year, is a mileage-based insurance policy program. These include programs such as Metromile, available in seven states, and Esurance Pay Per Mile, available in Oregon. Ask your insurance agent about both of these options for possible savings!