Saving Money on Auto Insurance

This article will focus on some tips for saving money on your auto insurance. One thing to consider is that when you decide to change insurance companies, once you are approved by your new carrier, call your previous company and make sure that they cancel your auto insurance promptly.

A lot of people think that their new insurance company will do this for them or that their insurance will just lapse or "run out." The reason you'll want to do this is because your prior insurance carrier may continue to keep you covered for an additional 30 days or so, not knowing that you've purchased insurance elsewhere.

As a result, your prior insurance company is going to look for you to pay for this period of coverage (referred to as earned premium) and will not hesitate to refer your account to a collection agency if not paid. In most cases, if you show the prior carrier proof that you have insurance elsewhere, they will usually disregard the premium that they are seeking for this period of time.

Increase your deductible, higher deductibles normally mean lower monthly payments and vice versa. So if you are not accident prone and can afford to pay a higher deductible should something happen, increasing it may be a wise money-saving choice for you.

Now let's talk a little about youthful drivers. Most insurance companies want all of the drivers in your household listed on an insurance policy (whether any youthful drivers drive a particular insured vehicle or not). Even if you told most companies that your youthful driver does not drive your car, your insurance company will still expect you to pay higher rates and include the younger driver on your policy.

Assuming that the youthful driver is under the age of 25, you may be able to sign what's called a Named Driver Exclusion form, which means that (you agree that) the younger driver will not be covered if he operates your insured vehicle(s). This also means that you are not paying a higher premium because of the youthful driver. Being excluded should not matter as much if the youthful driver never actually drives the vehicle in the first place.

Another money saver is to inquire if you can get a Good Student Discount. This will save you money and usually requires that the youthful driver is under age 25, and has at least a "B" grade average (which may have to be verified by having a form signed by a school official). Tip: The Good Student Discount may yield a largerer discount for male drivers than female drivers.

Another consideration for students who attend college away from home is: if the student is away at school for the majority of the year, you should be able to list the car that they primarily drive as being "garaged" at the school address. This is basically saying that for most of the year, this is where the car will be kept and the rate for this vehicle should be charged accordingly. If you are the parent of a student and you pay for the insurance, you should be able to have your insurance company send the bill to you while having the car's "rate" being based at the college address. This may save you quite a bit of money, especially if the school is in a small rural town and you live in a big city.

For older drivers, some states offer a defensive driving course for people over the age of 55. Upon completing the course, you should be given proof of completion to show your insurance company, which may in turn offer discounts for successfully completing the course.

Another money-saver is to have your insurance premiums deducted from your checking account each month (if you pay on a monthly basis), this can not only save you money in monthly service charges, but will also save you postage and any potential late fees that you would normally incur as a result of delayed mail etc.

Lastly, if you have 3 cars insured by one insurance company, pay by mail and each car is on a separate account, you are most likely paying three separate service fees, when you could combine all of the cars on to one billing account and pay just one service fee per month. Combining all three vehicles on to one account can also help you to manage your payments better, since all three vehicles will most likely have the same due date.

Mortgage Rates Are Still Low! Homeowners Click Here

         






Family 1st™ is an Illinois licensed Insurance Agency.