There are many options for insurance policies that will save money for the budget minded consumer. This article will take a look at 10 tips for purchasing car insurance on a budget.
1. Good Driver or Good Student?
When shopping for car insurance on a budget it is important to take into account anything that will offer you a discount on your premium. Often insurance companies will give you a discount for being a good driver or for maintaining above a 3.0 GPA in school.
2. Shop Around
Different insurance companies offer different policies for different prices. Do not assume the cheapest policy will be your best bet later on if you are involved in an accident; it is important to get the coverage you need to protect yourself in the event of an accident.
3. Old Car?
If you have an older car you can often times forgo collision and theft on your policy, both of these would cost more to insure than they would help in the event of an accident or theft.
4. Low Mileage
If you do not drive many miles per month insurance companies will give you a discount. This may apply to college students away at school or high school students.
5. Pay as you go car insurance
Pay as you go car insurance can save money for anyone who is budget conscious when purchasing car insurance. See my other article “How to decide if pay as you go car insurance is right for you” to determine if the pros outweigh the cons.
Car insurance companies will often include extras such as windshield coverage, theft, animal, and fire damage; if you are on a budget it may be best to forgo these extras to save some money.
7 High Deductible
I say this with hesitation because if you do actually get in an accident you will be paying much more than you would want. What happens is if you opt for the higher deductible your premium will be less expensive but you have to pay more if you get in an accident.
8. Does your state require auto insurance?
I have seen other articles saying that every state requires it by law; however New Hampshire does not require liability. I do not believe it would be wise to forgo auto insurance, but if you are trying to save money check with your local state policies for minimum coverage required.
9. Do all your vehicles need auto insurance?
Many of us have more than one vehicle, often 3 or more. If you are looking to save some money on insurance you can make one vehicle a primary vehicle and one a secondary, then not use the other vehicles. You could save hundreds if you are not insuring more than 2 vehicles.
10. Combination Insurance Packages
Some insurance companies will combine home owners insurance with auto insurance for a cheaper premium. This option should be looked at if you want to save hundreds on both insurance policies.
http://www.edmunds.com/advice/insurance/articles/44858/article.html. Phillip Reed, How to Save Money on Car Insurance.