Insurance policyholders negotiate for lower rates and maximum benefits depending on the insurance company they insure with. Those with a good driving record, a high credit score, those who have multiple policies from the same insurer as well as those with more than one car are offered lower premium rates. You can save money on car insurance without exposing yourself to unnecessary risks by doing the following.
Raise Insurance Limit
Auto insurance is a requirement by law so you cannot escape paying it. There are minimum car insurance requirements for each state and since this may not be enough coverage you can ask your agent to raise the car insurance limit to be on the safe side. You do not know what might happen in the future and if you get involved in an accident when you are at fault the medical bills and car repair costs can be high.
Increase Liability Insurance Limit
Liability insurance should be enough to cover third parties when an accident occurs. If the coverage is not enough they may sue you and this can put your assets in jeopardy because they will be used to pay the liability. You can ask the agent to raise the state limit so it will save your assets in case you are involved in an accident. Raise the liability cover so your assets will be safe. In case of a lawsuit your assets will be use to pay medical bills for injured passengers and pedestrians if coverage was not enough.
Increase your deductibles
Keep you deductibles high. This is the amount you will be required to pay when a loss arises before the insurance can pay the rest. Save the money in an interest-earning account. When you raise your deductibles on your car policy you will save substantial amounts in a year on lower premiums. You should pay for minor auto repairs from out-of-pocket to preserve the insurance compensation for theft and fire losses or major repairs when your car is involved in a car accident. You can also save money monthly for these minor repairs in an interest-earning account so you are not caught unawares.
Withdraw comprehensive and collision coverage
There is no need of paying extra comprehensive and collision coverage if the replacement value of your old car is almost the same as the deductible. You should assess your car policy every year to know if you need the extra coverage or not. You may reduce it or do away with it altogether if it is not necessary.
Shop around for great offers
Competition drives prices down. Every year you should make a point of comparing different insurance companies' benefits and prices. You can browse comparison sites for online price quotes and compare the prices and benefits. Check the company's reputation and complaints database. You can also ask your broker to shop for the best deals from different insurers which will offer the highest coverage for the most competitive prices. Ensure that you are paying a fair price.
Ask for a reduction
Negotiate with your agent for lower premium rates and since they don't want to lose customers you may get lower rates. Ensure that there are no duplications in what is covered. You can cut down on unnecessary luxuries to save your money. The more experienced you are as a driver the lower the rates. You can enroll for extra driver-training courses like safety and defensive courses to lower the premiums you pay each month. You can also negotiate for lower premium rates if you maintain a good driving record.
There are discounts for those who own more than one car and you should take advantage of multi-car insurance policies. You should also qualify for multi-policy discounts for policyholders who have taken different insurance policies for auto, homeowner and life policies from the same company. Call your broker and find out if they offer these discounts and then buy the car policy from the same company where you have your homeowner's and life policies. There are low-mileage discounts and discounts offered to cars installed with safety features like alarm systems, airbags and anti-lock brakes, for low-profile cars and low-cost vehicles which cost less to repair. Shop around for the best deals.
Credit unions, major employers and financial institutions arrange for group insurance rates which charge lower premiums and offer group discounts. Find out what is applicable in your situation, location and profession. Premium rates are higher in rural areas where there are fewer accidents than in the cities. If you have insured in the same insurance company for a number of years and your driving record is good you may negotiate for a renewal-discount if you have not had an accident or over-speeding offenses.