The car is one of the most expensive, if not the most expensive, asset that most people will pay for over the course of their lifetime. Sometimes the best way to make money, is to reduce the cost of a recurring expense. Car insurance, which is becoming more than a nicety, but is more and more a legal necessity, is one of the largest car expenses that the normal person will have.
However, there are many ways to save money on car insurance specifically, thereby decreasing the total expenditure that one has on the car. Here are some of the best ways below.
6 Simple Ways To Save Money On Car Insurance
Tell Your Insurance Company About Upgrades
Upgrades which decrease the risk that the insurance company takes on your car, such as a GPS, manual steering bar, alarm system that you put on aftermarket, or other type of third party tracking system is worth a decrease in your premium.
If your insurance company does not want to give you a decrease in your premium for these things, do not be afraid to walk away, as there are many insurance companies that will.
If you move towards work, you have the means to lower your car insurance premium as well. Commute miles are tracked with a special interest by insurance companies, as work and home are the places in which your car spends the most time. If you move closer to work, then that is a verifiable decrease in mileage, which means a decrease in your premium.[If you are a member of the contingent workforce, you may want to consider this fact before taking your next assignment.]
Garage And Safety
If you buy a garage, or just if you keep your car in a garage at home and at work and your insurance company does not know about it, this too is worth a decrease in your premium. Most providers consider a garage a safer place for a car than outside or street parking.
If you are moving work or home locations, check to see if your new zip code has a lower rate than your previous one. Some zip codes are given lower premiums because they are considered safer residences and places of work than other zip codes.
Make sure to inform your provider immediately if you find that your new zip codes are safer than your old ones.[Read about how we were able to save money on car insurance, simply by moving]
If you are in the market for a new car, and you do not care exactly which year car you get, older models (all else held constant), as a rule, are charged lower premiums. Many car models do not change cosmetically over the course of many years, so there is no difference except for the year of manufacture.[Fat Guy’s Note: Of course, if you are purchasing a used car, there are many other factors which must be considered – especially reliability.]
If you have a choice, pick the older model and make sure that you tell the insurance company that you did so.
Save Money On Car Insurance Based On Profiles
Insurance companies also give lower rates to married men, men with dependents, or men who have some type of responsibility in life that makes them safer in the eyes of the insurance company. If you get married, or you take over for the care of a loved one, or adopt, or have a family structure change of any kind, inform your insurance company immediately so that they can make the appropriate changes to your policy.[Fat Guy here again: I guess that’s another reason I am happy we just celebrated our 5th wedding anniversary! ;-)]
With the right information, you can find cheap car insurance, which means that you will save a bundle on car expenses overall. The main point is to keep your insurance company informed of all changes, especially those which are beneficial to your premium, and to not be afraid to walk away if your current company decides to neglect these changes.
The insurance business is much more competitive than companies would have you believe, and there are many companies that would happily have you at a lower rate.
photo by JJ The Jester
© 2011 – 2013, Khaleef “Fat Guy” Crumbley. All rights reserved.