As much as I loathe paying for automobile insurance, the price of foregoing appropriate coverage can be even more expensive - and, in some cases, illegal. Here are a few ways I have been able to trim $577 off my semi-annual automobile insurance premiums, for a total yearly savings of $1154, while still obtaining the coverage I need on two vehicles and three drivers.
- Driver's Education
Sure, most people know that having teenagers take a driver's education course will reduce their automobile insurance premiums, but did you know the same is true of mature drivers? Many states mandate insurance discounts if a driver 50 years of age or older attends a driver's education course in a classroom setting. Although my home state of Georgia is not one of them, some states allow the course to be taken on-line and still afford the discount. You can check with your state's insurance commissioner or with your agent to see if a class would afford a discount.
- Log Your Mileage
With gas prices nearing $4.00 a gallon in my area, I am much more careful about how often I make trips around town. As a result, my annual mileage has plummeted substantially. Many insurance policies, including mine, are based on the number of miles driven in a year. By reducing my projected mileage to a more accurate number, I was able to shave $36 off my last six-month policy renewal. My neighbor saved nearly $100. She recently started taking a ride-share van to work and removed her commuting mileage from her insurance policy.
- Bundle Policies
By purchasing my automobile insurance from the same company that provides my homeowner's policy, I save 15% off the original premium. This adds up to nearly $200 per year.
- Pay In Full
My insurance company charges $2.00 per monthly payment if the premium is paid by direct bank withdrawal. The charge rises to $7.00 if I want to send in a monthly check. I forego all the payment fees by paying the policy in full every six months. If I charge it to my credit card (and pay it off in full the following month), I also receive a 1% cash back bonus from the credit card company.
- Teen GPS
You may not like the idea of Big Brother watching, but, if you let your insurance company spy on your teenage driver, you just may qualify for a discount. Several insurance companies are now offering GPS tracking or in-car camera devices to monitor teenage driving habits, including speeding and sudden acceleration or braking. Enrolling in one of these programs provides a mandatory insurance discount in some states. With my 17-year old nearly on the verge of getting his license, the idea of as much as 15% off his premium is certainly tempting.
- Cut the Comprehensive and Collision
Normally, I am wary of cutting premiums by reducing coverage or increasing deductibles past our family's comfort point. My exception is our 1998 van. The car has more than 250,000 miles on it, and the insurance company is only going to reimburse us for the cash value, which according to a national automobile appraisal site is less than $1,800. In this case, comp and collision is not worth the cost.
- Driver's Education
Sure, most people know that having teenagers take a driver's education course will reduce their automobile insurance premiums, but did you know the same is true of mature drivers? Many states mandate insurance discounts if a driver 50 years of age or older attends a driver's education course in a classroom setting. Although my home state of Georgia is not one of them, some states allow the course to be taken on-line and still afford the discount. You can check with your state's insurance commissioner or with your agent to see if a class would afford a discount.
- Log Your Mileage
With gas prices nearing $4.00 a gallon in my area, I am much more careful about how often I make trips around town. As a result, my annual mileage has plummeted substantially. Many insurance policies, including mine, are based on the number of miles driven in a year. By reducing my projected mileage to a more accurate number, I was able to shave $36 off my last six-month policy renewal. My neighbor saved nearly $100. She recently started taking a ride-share van to work and removed her commuting mileage from her insurance policy.
- Bundle Policies
By purchasing my automobile insurance from the same company that provides my homeowner's policy, I save 15% off the original premium. This adds up to nearly $200 per year.
- Pay In Full
My insurance company charges $2.00 per monthly payment if the premium is paid by direct bank withdrawal. The charge rises to $7.00 if I want to send in a monthly check. I forego all the payment fees by paying the policy in full every six months. If I charge it to my credit card (and pay it off in full the following month), I also receive a 1% cash back bonus from the credit card company.
- Teen GPS
You may not like the idea of Big Brother watching, but, if you let your insurance company spy on your teenage driver, you just may qualify for a discount. Several insurance companies are now offering GPS tracking or in-car camera devices to monitor teenage driving habits, including speeding and sudden acceleration or braking. Enrolling in one of these programs provides a mandatory insurance discount in some states. With my 17-year old nearly on the verge of getting his license, the idea of as much as 15% off his premium is certainly tempting.
- Cut the Comprehensive and Collision
Normally, I am wary of cutting premiums by reducing coverage or increasing deductibles past our family's comfort point. My exception is our 1998 van. The car has more than 250,000 miles on it, and the insurance company is only going to reimburse us for the cash value, which according to a national automobile appraisal site is less than $1,800. In this case, comp and collision is not worth the cost.
