9 Ways to Save Money on Auto Insurance

save money on car insurance

9 Ways to Save Money on Auto Insurance



You’ll find that these nine points are very simple ways to save money on your auto insurance:

1. Higher Deductible + Lower Premium

The deductible is the amount you pay before the insurance company will pay if you have a claim.  For example, if you have a $500 deductible and you have an accident in which your car sustains $1,500 in damage, you pay the first $500 and your insurer pays the balance, $1,000. The lower the deductible you choose, the higher the premium, or price of your auto policy. If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.

2. Combine Your policies With One Company

Using one insurance company for your homeowners, auto, life and other types of insurance will save you money. As a driver, you are required by law in most states to have liability insurance. If your car insurance is with a different company than your homeowners or renters insurance, consult The Southcott Agency, Inc. to place all of your insurance policies with one insurance company. Also, if you have had one insurance company for many years and are pleased with their service, keep that company. The longer you’re with one company, the more money you’ll save.

3. Careful Driver = Lower Premium

A good driver who has few or no speeding tickets, no accidents, and no DUIs will have a lower premium than a driver with any of the above.  If you are careful and follow the law, you will be rewarded with a lower price for your auto insurance.

4. Fewer Miles = Lower Price

Check your mileage on your car and then check with The Southcott Agency, Inc.  Drivers who clock fewer miles per month than the national average of around 1,000 miles a  month, might get a discount.

5. Flashy Car – Higher Premium

If your car is fast, flashy, expensive, turns heads when you pass and is more likely to be stolen, you will pay more to insure it.  It’s going to cost more for your custom ride than what average drivers pay.

6. Older cars = Less Coverage

It doesn’t make sense to have collision and comprehensive coverage on an older vehicle that has a resale value in the low thousands.  Considering the deductible has to be paid before your insurance starts paying, it’s just not worth it.  You still need liability and medical coverage for yourself and your passengers, however.  Consult the Kelly Blue Book website, www.kbb.com, to find out how much your car is worth.

7. Safe and Smart = Lower Premium

Safety devices on your car mean savings for you!  Cars that beep until seat belts fastened, have ABS (anti-lock brakes), airbags and car alarms will save you money.  Good grades also pay off in more ways than one.  Students with good grades have lower rates.  Defense!  It may be worthwhile to take a free or inexpensive defensive driving course.  Call The Southcott Agency, Inc. to find out how much you could save.

8. Rural Area = Lower Premium

If you live in a small town or in the countryside, you’ll pay less money for your car insurance.  People living in more heavily populated areas like major cities pay more for their automobile insurance.

9. Good Credit = Lower premium

If you have a good credit score, you could be eligible for discounted premiums from several auto insurance companies.  Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance.  You could save money by shifting your business to an insurer that uses credit as a rating factor, even if you have a so-so or poor driving record.  On the other hand, if you have a poor credit score, you could save money by moving your auto insurance to a company that does not use credit as a rating factor, and many insurers do not.  Regardless of your credit status, you should talk to an agent at The Southcott Agency, Inc. to make sure you have the best rates possible for your credit score.

Having good coverage on your personal auto can also save you money when renting a vehicle.

When you rent a car, you will be asked if you want to buy “coverage” from the rental car company.  You do not have to buy their insurance to legally drive the car.  It is best to be prepared and know that in New York State, your coverage follows you when renting a car.  This means you will have Comprehensive and Collision coverage on the rental if you currently have it on your personal auto policy.  Likewise, if you do not have the coverage on your current policy, you will not have it on the rental vehicle.

If you only have liability coverage and do not have comprehensive and collision coverage, you MAY NEED to buy the rental car company’s insurance coverage, because liability on your auto plan will not cover anything that happens to the rental car.

If your personal auto policy includes liability insurance and most do, your policy will pay for any damage or injuries you cause to other cars or property up to the payout limits of the policy.  If you are comfortable with the amount of liability coverage you have for your own car, you do not need to buy additional liability insurance for vehicles you rent. 

If you do not have a car, and therefore have no auto coverage, be advised that many states require rental companies to provide some liability coverage to you at no charge.  The limit of free liability coverage is usually the same as the state’s minimum liability.

Rental car coverage varies by state, so please check with The Southcott Agency Inc . for details.

Rental car coverage extends to vehicles rented in the US and its possessions only.