It’s a common situation: one or more members of a household search through the Yellow Pages or other resources for car insurance rate quotes they can use to get covered for legally operating their vehicles. Whether you’re looking for personal car insurance or a family auto insurance plan, some common tips can help get you to the kinds of prices you need to plan for the costs of remaining on the road.
Keep It in the Family – One of the main considerations for almost any household auto insurance plan is to check with all members of the family to see how each individual’s budget affects others. Often, there are ways to profit from a group or family auto insurance plan, and in some states, larger cooperative plans go even further to help individuals get cheaper group coverage that they can afford.
Use a Deductible – This is another extremely common way for lower income households to manage the sometimes high cost of auto insurance, especially if a high risk driver is involved. Raising deductibles means the family or individual will pay out more in the case of an accident. When raising the deductible extremely high, it’s necessary to have the money on hand for an emergency. Otherwise, policyholders can find they are not really covered. However, a modest deductible hike can save dollars without leaving policyholders open to too much liability.
Work with Vehicle Mileage or Use – When you sign up for an auto insurance policy these days, the insurance company’s representatives will almost always ask you how much you use your vehicle. More use drives up the price of auto insurance. So why do drivers accurately report annual mileage or use? Presumably, auto insurance companies could deny claims if they can find, according to odometer readings or other official reports, that the vehicle was driven much more than previously reported. The best way to save on this aspect of auto insurance is to plan to use your car less. Report a lower bracket of use, and you will see your premium costs fall.
Evaluate Liability Limits – Many drivers who are nervous about their risks on the road want to get robust liability coverage. This protects the driver from accidents where they are at fault. However, cutting down to the minimum liability limits required by the state can shave dollars off of a premium.
Skip Collision and Comprehensive Coverage – Extra collision coverage or comprehensive coverage will protect the value of your vehicle in situations like theft and vandalism as well as some kinds of natural disasters, always according to the specific fine print of the policy. This is a valuable addition for expensive cars, but if your vehicle is getting older, you can sometimes take a bit of a risk to drop these extras to see lower auto insurance prices.
Look at Payment Options – Many auto insurance companies allow for lump-sum payments, which can help customers figure the cost of insurance into their budget.
Taking a closer look at auto insurance policies at the outset can really help customers to manage their finances. All of these tips will help provide a clearer picture of what you are buying, and how it will come out of monthly or annual income.