I am a big proponent of not shopping for insurance solely based on price. There are other important factors. But, for some people, price is the biggest factor. And for some people, two insurance companies may offer the same personal service, the same claims processes and the same service. So then it may come down to price. If you are shopping on price, or using it as a factor, here are 8 tips to save money from the Atlanta Journal Constitution.
- Don’t assume any one company is the cheapest
A recent NerdWallet analysis found a difference of $859 a year between the average insurance quote and the lowest available quote.
- Don’t ignore local and regional insurance companies
- Check for discounts
- Pay your bills on time
- Consider insurance costs when buying a car
A NerdWallet review of rates for best-selling vehicles in 25 cities found that the Toyota Camry, for example, cost an average of $187 per year more to insure than the comparable Honda Accord.
- Skip comprehensive and collision if you do not need it on an older, lower value car.
Of course, if you need the car and cannot afford to replace it, then you should keep your comprehensive and collision coverage.
- Raise your deductibles
- Consider usage-based plans, especially if you don’t drive much
If you’re a safe driver who doesn’t log very many miles, consider a usage-based insurance program, such as Allstate’s Drivewise, Progressive’s Snapshot or State Farm’s Drive Safe and Save. By signing up for these programs, you allow your insurer to track your driving electronically in exchange for possible discounts, based on how much you drive, when you drive and how well you drive.
If you drive less than 10,000 miles per year, you might be able to save money with a mileage-based insurance program.
I hope these tips help. And remember, I offer a FREE insurance review for any California resident for homeowners and auto insurance.