7 Money Saving Tips
How to Get the Most for Your Money: 7 Ways to Save Money on Your Car Insurance...
So you’re shopping around for auto insurance. What do you need to know? Well, there are lots of ways – at least 06 – that you can save money. Many of these money-saving ideas may apply to you.
1. Good Driver, Good Price – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however.
* Tip. Make sure you’re getting the best discount for your driving record. Talk to your agent. And remember, be a safe driver. It will save you money.
2. The Beauty of the Bus (or the Skytrain) – Do you drive to and from work? If you do, you are literally paying a premium to do so. ICBC charges you significantly higher premiums if you drive to work. And, the longer your commute (in kilometers, not minutes), the higher the premium.
* Tip. Some drivers should consider public transport. Yes, there’s a price there, too. But you will reap the savings of gas and lower insurance costs.
3. High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.
* Note. To find out which vehicles costs more to insure call us before you purchase that vehicle.
4. Raise Your Deductible – The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $300 deductible and you have an accident in which your car sustains $1,000 in damage, you pay the first $300 and your insurer pays the balance, $700. The lower the deductible you choose, the more you pay in premiums. If you have assets, you can probably afford to absorb at least $500 - $1000 if you have a claim.
* Tip. If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.
5. Drop Unnecessary Coverages – Let’s say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverages. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get.
* Tip. As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.
6. Discounts, Discounts, Discounts – Auto insurance companies offer several discounts for a variety of reasons. The most common discounts are: anti-theft devices, senior discount, disability discount, fleet discount, experience discount, etc.
* Tip. Make sure you are taking advantage of all the discounts available to you!
7. Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.