Protecting Your Beloved Possessions

3 Tips For Lowering Your Auto Insurance Premiums

Is the cost of continuing to drive your car almost prohibitively expensive? Have you seriously been considering selling your car and riding a bike or taking public transportation everywhere? Using alternate transportation can be a good idea when it's something that you want to do. If it's something that you're forced to do, it can be more than just a minor inconvenience. In many instances, spending less on your insurance would make driving a more reasonable and affordable option. If this sounds like something that might apply to you, here are some tips on how to get a less expensive auto insurance policy:

Switch companies: You won't always save money on auto insurance by switching to another company, but it can definitely happen. Many insurance companies have introductory offers for new customers. A new customer and a customer who has been with the insurance company for a few years, with the same policies and similar driving records, may have different insurance rates. When comparing prices, make sure that you give the same information to each one that you shop with. Even slight changes can sometimes result in dramatically different pricing.

Raise your deductible: Having a $500 or less deductible may be nice, but you'll wind up paying for it in the end. The lower your deductible is, the higher the auto insurance company will raise their premiums to compensate. Depending on your insurance company, doubling or tripling your deductible can make it so that your new premiums are a fraction of what they were before. If you set aside $10 or $20 of that savings after each insurance payment, you'll soon have enough money saved to cover the increased deductible in the event of an accident. If you can't afford even that right now, setting aside anything at all is still a good idea.

Remove extra drivers: Although it might hurt your teen's feelings to no longer be allowed to drive the family vehicle or vehicles, removing him or her from your auto insurance policy can dramatically decrease the price of your insurance premiums. If you don't want to go that far, consider charging your teen for the privilege of being able to drive the car. This includes paying for the extra insurance in your insurance rates as well as replacing any gasoline that he or she happens to use. Charging your teen a portion of his or her allowance or part-time job will help to prepare him or her for being an adult. After all, if you want to drive your own car, you still have to pay the associated costs and fees.