6 ways to save on auto insurance if you drive an older car
Written by Tom Tennant on October 20, 2010 & Posted in Auto Insurance
f you sit behind the wheel of an old, but reliable car then you might be sitting on a goldmine of auto insurance savings. If you're ready to save big on car insurance, following the steps below may help you find the cheapest car insurance possible.
Review your coverage. Consider dropping comprehensive and collision coverage on cars worth less than $1,000, suggests the Insurance Information Institute (III). As long as you can afford to pay for any damage incurred in a fender benders, this coverage usually isn't necessary. You should also think about dropping extras like roadside assistance, especially if you're an AAA member.
Raise your deductible. The higher your deductible, the lower your premium. Choose the highest deductibles you can afford in order to get cheap car insurance rates.
Drive less. If your older vehicle is your second car and used primarily to drive to and from work, or some similar situation, consider public transportation or carpooling. By reducing the number of miles you drive, you may also be able to reduce the amount of automobile insurance you pay.
Ask for discounts. Chances are, if you have a multiple-car policy, receive your statements electronically, have a good student driver or have anti-theft devices in your car, you are entitled to an auto insurance discount. Make sure you're getting the lowest premiums possible by asking your auto insurance company what discounts you qualify for.
Consider life events. As you grow older and become a more experienced driver, car insurance rates tend to decrease. Consider every birthday a reason to compare auto insurance quotes. Other life events that can change your rate, include buying a home, adding a driver, and having an accident or ticket fall of your driving record.
Know your state minimum, but don't skimp where it counts. To legally drive, you must carry the minimum car insurance coverage your state requires. But don't select the minimum just because it's cheap. It could cost you financially in the long run. Uninsured/underinsured and liability coverage are must-haves for almost any auto policy because both types of coverage protects you and your assets financially should you get into an accident.
In addition to the six tips provided, be sure to shop and compare auto insurance rates. Remember, rates change regularly, so if you haven't shopped lately, you could be missing out on big savings.
If you can put in a little time to review your car insurance policy, it's possible to save hundreds, or more, on your annual auto insurance premium.
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