Most people own cars. It's a fact of life. You need a way to get to work, or drop the kids off at the pool, or get groceries. Unless you live in a dense urban area, it's probably inconvenient to take the bus every day. What's even more inconvenient, though, is your car insurance bill. Every year you pay anywhere from $1,000 to $3,000 depending on what state you live in, the car you drive, your driving record, and many more variables. There's no way out of paying, but there are some techniques that could help ease the pain by shaving off some of those dolla dolla bills from your bills.
For the first time ever, The Minimal Minute has a guest writer to provide expert input that's well out of my realm of knowledge (since I haven't owned a car since '06). Kevin Parkins has been a good friend of mine for years and has offered me advice ranging from business practices to finding the right health insurance. Today, he's stopping by to offer you guys tips on lowering your car insurance bill. Take it away Kevin.
"Although there are many universal rules to lowering insurance costs like not getting into an accident or avoiding speeding tickets, there are quite a few tricks of the trade that many consumers aren't aware of. I’d like to share a few of them with you.
Reduce Your Mileage
Drive less. The amount you pay each month is in part determined by how much you are driving on a daily basis. If you drive less than 60 miles per day, be sure to look into any low mileage discounts.
Lump Sum Payments
If you can afford it, pay up front in full for the whole six or twelve months. Doing this saves the insurance company money by reducing postage, printing, and processing costs. The savings are passed on to you. The discount is usually good for $5.00-$15.00 per month savings. Over 12 months that adds up.
Get a one year policy. Insurance rate increases are unavoidable, I hate them just as much as my clients do. If you utilize a 12-month policy you've locked in your low rates for twice as long as the standard 6-month policy.
Increase your deductibles. The price you're given for comprehensive and collision coverage is influenced by how much “skin in the game” you have. If you have a $50.00 deductible, your monthly insurance will always cost more than a $1,000.00 deductible. On a side note, don't over extend yourself. If coming up with $1,000.00 is difficult, don't get it.
Your car may have safety features that aren't standard on all vehicles. Make sure you're receiving all of the discounts you're eligible for.
If you're a AAA member there are discounts that carriers may give you. The same discounts you get from going into a AAA agency. Figure out a way to say this nicely, but AAA agents aren't that good. They also sell travel insurance, roadside service, travel services, etc. They're stretched out so thin they don't really do anything exceptionally well. Its better to go to an expert.
I may be called a pariah in the insurance industry for this but always remember loyalty doesn't matter. If you've been with an insurance company for 3-4 years, you're stuck in their old “rate set” (the algorithm they use to determine your monthly cost). Meaning if you were to sign up for the exact same company with the exact coverage, and all things being equal, they will give you a lower price than you're paying now."
Thanks Kevin! Those were some solid tips. If you want to learn more or contact Kevin directly with specific questions, he'd be glad to help. Connect with him through Facebook or direct through email: