There are many ways to save money on your car insurance policy. Some of them are obvious like paying for the entire policy rather than making payments or increasing your deductible on your collision coverage. However, the following are three often overlooked ways to pay less.
Quote other insurance companies with a clean driving record
If you had a couple of speeding tickets or had an accident in the past but have maintained a good driving record since, you may be ready for a lower cost policy. As you well know, an accident or traffic violations will usually mean an increase in your insurance. But how long these incidents affect your insurance costs varies from one insurance company to another. You can call your insurance company and ask, but don't expect much. A better course to take is simply get several quotes from other companies. The best time to start doing this is a couple of years after your infraction or accident. Of course, the seriousness of the issue will be a factor. A DUI may take several years to go away, whereas a simple speeding ticking may be overlooked by an insurance company after a year.
Reducing your coverage because your car is paid off
If you have been paying monthly installments on a car loan, after your last payment you will be given the title to your car. Up until this time, you have been required by your lender to have full coverage for your car as it is collateral for the loan. But once you own the car free and clear, you can decide on the insurance coverage. You may want to keep full coverage, but you may want to drop the collision portion. This is the coverage that pays for the damage to your car when you are at fault. If your car has depreciated greatly over the course of the car loan, it is worth considering, especially if you are a good driver. When you look at how much you are paying a year for collision and compare that to the market value of the car, it may not be worth the extra cost.
Install a driving monitoring device
Also known as a telematics device, this is an electronic device that records how many miles you are driving, how fast you are traveling and how quickly you brake the car. Some insurance companies allow for a discount when you are willing to install such a device. It is not a complex installation, and is done quickly. Good drivers can save money with this device. Exactly how much will depend upon the specific insurance company.
The ways to save money listed are often overlooked, so they are worth your consideration. For more information, talk to a company like Metropolitan Insurance Service Consultants.