The New Year is always a good time to reassess our expenses and figure out ways we can save money and make it easier to make ends meet. One area that deserves to be looked at is your auto insurance. Often, just making a few simple tweaks here and there can reduce your premiums and put more money in your pocket.
Here are five things you can do help lower your car insurance premiums in 2014:
Drive Fewer Miles: With higher fuel prices, we already have plenty of incentive to drive our cars less. However, many do not realize that gas is not the only thing you save when you decide to walk, ride your bike, carpool, or just consolidate your trips. Most insurers also offer lower rates to those who drive less miles during the year. Take a look at ways you can reduce your driving. In the long run, this is not only better for your wallet but for the environment as well.
Raise Your Deductible: Take a look at what deductible you currently have on your auto insurance. If it is $100 or even $250, you should seriously consider raising it up to $500 or $1000. The reason is simple; the more claims you file, the higher your premiums will be later on. So for example, if you have a fender bender with a $300 repair, you will probably want to take care of that yourself. Save the insurance claims for major damage.
Equip your Vehicle with Safety Features: An increasing number of insurance carriers are offering discounts for adding safety features to your vehicle. These may include automatic seatbelts, anti-lock brakes, remote car starters, and of course an anti-theft/alarm system.
Research Insurance Rates before Buying a New Car: If you are in the market for a new car in 2014, be sure you know the full cost of the vehicle before you sign on the dotted line, including the cost of insurance. Insurance rates can vary greatly from one car to another. One quick call to your agent before making the final decision could save you hundreds a year on the cost of owning the car.
Shop Around and Compare Rates at Renewal Time: It is always a good idea to look around a little when your auto insurance policy is up for renewal. You may think you pay the lowest rates, but you never really know until you have checked out a number of other carriers to see what they have to offer. One word of caution; if you find a carrier that seems to have a lower rate, make sure you are comparing apples to apples. Remember, every insurance company you talk to will put the best possible spin on their offerings. For this reason, it is best to talk with an independent insurance agent, one that has no vested interest in any particular carrier, so you can receive a fair comparison and find the car insurance policy that best suits your needs.
About The Author
Todd Balderson has been protecting families and businesses through insurance coverage since 1996. He is the founder of Balderson Insurance Agency and serves clients in Maryland, DC, and Virginia. Todd is known for reminding people about how “insurance is more crucial to building your wealth than investments because without insurance, it’s easy to lose your assets.” Learn more about Todd and the insurance protection he offers at http://www.BaldersonInsurance.com