Three Ways To Save On Car Insurance That You May Not Have Thought Of
Are you planning to save more in the New Year? Whether you are stashing away money to pay down debt, fund retirement, or to take a dream vacation, one place where you can sometimes make cuts is your auto insurance policy. While you probably already follow common cost saving ideas, like comparing prices and combining policies, there may still be a few money saving options that you are unaware of. Let this guide inspire you.
Tip #1: Drop Your Coverage
Of course, this doesn't mean to drop your entire policy. If your car is paid off and you have already stashed some cash in the bank, why not drop your full coverage policy to your state's minimum liability coverage? This is especially true for older cars that aren't worth much, or if you have enough cash to cover your car's replacement. Dropping the full coverage part of your policy simply means the insurance won't pay you for damages to your car that are considered your fault – they will still cover the other party's losses. If you don't want to drop the coverage entirely, you can at least raise the deductible to an amount that you can still comfortably pay.
Tip #2: Submit to Monitoring
Some insurance companies now offer discounts if you allow them to monitor your driving habits. They provide you with a small device that plugs in underneath your dashboard. Insurance companies are generally tracking for how often and at what times you drive. They may also monitor other things, such as how often you slam on your brakes. If you tend to drive very little or if you aren't on the road at dangerous times (such as during rush hour), you may qualify for a discount. Monitoring is usually only done for a short period of time, but the discount remains for the life of your policy.
Tip #3: Pay For What You Use
There is another option that is starting to be introduced that takes monitoring one step further. This is called pay-per-mile insurance. These policies work best for those that don't drive very much, since you pay a per mile rate for a full coverage policy. Once again, a monitoring device is plugged in beneath your dash to verify how many miles you are driving per monthly policy period. Your per mile rate is generally set dependent upon your driving history, so a good history means you have a lower rate. These providers aren't yet available nationwide, so you will need to check with your insurance agent to see if pay-per-mile coverage is a good option for you.
For more information, contact Hamsher Insurance or a similar company.
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