If you are like most Americans, you want to lower your auto insurance premium. The cost to cover even one vehicle eats away at a significant portion of your monthly overhead. As a professional who’s counseled people in this area, I often get asked how to better control this expense. My answer: you need to take a second look at three aspects that drive up the price of your auto insurance premium. Change them and reduce what you pay.
- Calculate your (actual) annual mileage. When you complete an application for auto insurance, you are asked how many miles your drive annually. Then, you see a list of averages – what most of your peers drive over a 12 month period. Checking the box that most people do is a mistake. Depending on your circumstances, you might actually put less miles on your vehicle a year. Do the math yourself and select the appropriate figure.
- Report all of your car’s safety features. Do you have dual air bags? Are your headlights the kind that automatically turn on during the day? If so, you are due a discount. Lower your auto insurance premium by finding out what safety features are on your vehicle. Get a quick answer by checking out the sales paperwork for your car or the owner’s manual. Then, make a list and report your findings to your insurer. Simultaneously, ask about other potential credits such as the Good Student Discount.
- Get rid of unnecessary insurance add-ons. Avoid buying add-ons that offer double coverage. Why? Nine-times-out-of-ten you’ll only get the benefit of one; your second go-to insurer won’t pay for or even contribute to a loss another insurer has already shelled out money for. As a result, you ultimately lose out. Common example – most males and females purchase Triple A insurance along with the towing feature on their auto insurance. Be smart. Purchase one or the other, but not both.
Ready to save money? Use these three ways to lower your auto insurance premium to shave money off of what you pay to cover your vehicle. Every little bit counts and helps in maintaining a reasonable budget.
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