Are you paying too much for your car insurance? If you live in a state that requires all drivers to purchase automobile insurance, then you cannot simply “opt-out” in an effort to save yourself some money. However, there are some things that you can do to reduce the amount of money you are paying on car insurance.
One of the first things you can do is to take the time to shop around. Talk with insurance agents from several different companies, and compare what they charge for similar policies. It’s great if you can manage to do this before you purchase car insurance for the first time, because it will allow you to start with the best possible deal. If you are someone who has held an automobile insurance policy for several years, it might be time to review your policy. What changes have occurred since then? Speak with your insurance agent, and see if you can get a better deal as a result of those changes.
Find out about a pay-as-you-go car insurance policy. This seems to be a relatively new thing, and may not be available in every state. This kind of policy takes a look at how many miles you drive to determine what you will pay in premiums each month. If you don’t drive very often, or very far, this type of insurance could be a way to save some money on car insurance premiums.
Consider getting a different vehicle. If you are driving a flashy sports car, your insurance company is likely to charge you more in premiums than it will charge a person who is driving a station wagon. The reason has to do with risk assessment. Insurance companies often believe that a person who drives an expensive sports car is going to exhibit risky driving behaviors, so they will charge that person more, in anticipation of the claims they think that person will file. If you are at the point where you are considering getting a new vehicle, to replace your current one, consider a family friendly mini-van.
Make your college aged child get his own car insurance. Insurance companies are going to charge more for young drivers than they are for older drivers. Insurance companies feel that older, more experienced drivers, who have a family to look out for, are going to be more responsible when they get behind the wheel. One thing you can do to make your car insurance premiums go down is to get you college aged child off of your policy, and onto his or her own. This may not be an ideal solution for everyone, but is something to consider if you are desperately seeking a way to lower your car insurance premiums.
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