I use a money management program that gives me daily reminders of things I can do to save money or better manage my money. Today it was to compare vehicle insurance rates in Colorado. Car insurance can be a significant drag on your finances over time. Moreover, rates are rising as part of the general economic recession, with average premiums for drivers over $1,000 a year for basic coverage. There are some ways in which you can reduce your premiums to find a more affordable deal. Here are some ways to save money on car insurance.
You can receive lower premiums on your car insurance by choosing to pay for it upfront for a year, rather than monthly. Paying monthly insurance premiums means having to pay interest, which will gradually add to the overall cost of your cover. Many insurance companies also offer discounts for upfront payments.
Increase your Deductibles
Your deductible is what you agree to pay towards damages when you’re at fault, with the insurer covering the rest. Increasing your deductible means you will pay more towards repairs, but it means a lower insurance premium. This is something you should reassess every year anyway as your vehicle gets older and thus has a lower value. Keep in mind that if another driver is at fault, you won’t be paying a deductible to have your car fixed.
Understand Your “No Claims” Discount
A “no claims” discount is the amount you get removed from your insurance cover if you don’t make a claim. Discounts can add up from 20-75% over five years. This discount can vary greatly between auto insurance companies which is why you should shop around. As with everything, make sure you read the fine print. Your definition of a “claim” may be different from that of the insurance company.
How do you save money in Car Insurance?
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