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3 Tips For Saving Money When Buying Auto Insurance

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Maintaining auto insurance is a necessity that comes with owning a car. But while you can't legally get out of carrying car insurance, you're of course free to shop around and make sure you're getting the best deal possible. If you're thinking about switching auto insurance providers or you need to purchase insurance for a new car, here are a few tips that might help you get an even better deal than the advertised rate from the insurance company.

Inquire About Unadvertised Discounts

Typically, when seeking a new auto insurance policy, you'll enter your information and driving history online or verbally provide it to an agent over the phone. The insurance company then gives you a quote based on their internal criteria. But what they might not tell you is that they often offer additional discount options for certain conditions, and if you didn't provide that information on the application, you might be paying more money than you need to be. Examples of this include a discount for having an anti-theft device on your vehicle, a car with especially low mileage considering its age, or even a discount for being a good student at your local college. Discounts can vary by state, so inquire with an agent about discounts that may not be advertised and he or she should be willing to go down the list of all possible options for you.

Consider a Higher Deductible If You Can Handle Paying It

Insurance companies will naturally try to steer you towards carrying a low deductible, as this means they will get more money from your monthly premium. While this is actually in your best interests if you don't have a ton of money lying around, it's not a good fit for everyone. Take a close look at your driving history and your bank account before you make a decision. If you know you are generally safe behind the wheel and you are financially well-off, it might make sense to go with a higher deductible. Yes, you'll have to pay more out of pocket if an accident does occur, but if you are financially secure enough to handle this, it might be worth taking the risk to save more money each month on your payment.

Drop Collision Coverage on Older Cars

If you have multiple vehicles on your policy, it might make sense to drop collision coverage on the older vehicles. Collision coverage will pay for the damages if you are in an accident but is usually limited to the car's "book value." If you total an older car, the payout might not cover all of the damages if the book value is especially low. If you know you'll likely just get a new car anyway if you wreck one of your old ones, stop paying a high premium to cover it every month.

When shopping for auto insurance, make sure the insurance agent goes over all available options for discounts on your policy, not just the ones advertised on the website or brochure. For additional savings, consider carrying a higher deductible if a wreck won't financially destroy you and consider dropping collision coverage on older cars that have a low book value on the resell market. Contact a company like Edwards Insurance Agency for more information.


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