10 Ways to Save Money on your Car Insurance
Every day, we work hard to educate our customers to make certain they can make an informed decision on their insurance protections. As insurance professionals, our main concern is with your coverage. Let’s be real though, most consumers are plainly most concerned with pricing. Sure, you want to know that you are covered in the event of an accident. Sure, as a smart consumer, you know that you get what you pay for. That being said, you still don’t want to spend an arm and a leg for insurance. We get it. You’d rather spend those hard earned dollars on something a little more fun. The insurance dollars are necessary though to avoid loosing your shirt in times of crisis. So, what is the answer? How can you save? Here are some of our top tips from the pros at Shepherd Insurance Group.
DON’T skimp on liability. This is what protects your assets and wages from lawsuits in the event that you get in a car wreck that is your fault. A lawsuit can make a bad day turn into a bad (financial) life. DO, however, consider a higher deductible. The deductible is the amount you pay out of pocket before the insurance carrier jumps in to pay for the damages to your vehicle. The higher your deductible is, the lower your premiums will be. $100 out of pocket sounds nice if your car is caught in a hail storm. However, if it costs $300 more per year than a $500 deductible, you need only make it through 1.5 years without an incident for the $500 to be a much better deal.
DON’T wait until the last minute to buy insurance. Oddly enough, insurers know that statistically, those that plan and shop ahead of their expiration date are less likely to get into accidents than those that are buying last minute. Yes, really, there is statistical data to prove this. Therefore, they give better rates to those that shop two weeks before the date of their insurance company change.
DON’T file piddly claims if you can avoid it. If you back into your mailbox and ding up the bumper, you have a $1000 deductible, DO get an estimate before calling your insurer. This was your fault. If it happens to be repairable and is under that deductible amount, there is no need to tell your insurance company about it. Insurance companies believe past claims are an indicator of future claims so why turn it in at all? (Disclaimer…if you damaged someone else’s property or injured someone, you should call your agent.)
DON’T pay late! Did you know that most insurers give customers a “consumer score”? This means they rank you based on a number of factors including credit and if you pay on time.
DO consider telematics. Most carriers now offer some version of an app that monitors how you drive. If you think you are a great driver, this is your opportunity to prove it to the insurer. Pay less than the other people out there that drive like a bat out of Hell pushing up everyone else’s rates. It gives you some control over your rate, in many cases 10-40% off of some coverages!
If you get a speeding ticket, DO consider a diversion to protect your motor vehicle report. The county will sometimes offer a slightly higher fine to keep that ticket off your record. However, the catch is that if you get a second ticket in a (usually) 6 month period, it negates the diversion, so be good!
DO consider defensive driving courses. Many carriers offer a discount for this. Youthful drivers can often take driver’s ed to obtain this discount. For adults, there are many classes online that can be taken or in person.
If you have a student driver, DO encourage good grades. A B average or better almost always results in a nice “Good Student” discount, so turn in those grades to your agent every semester.
DON’T buy that new car. Older models are almost always less expensive than the newer ones. In fact, if your car is old enough, you may want to consider whether or not it merits having “full coverage.” Carrying comprehensive and collision on a car that no longer has much value isn’t always a good idea.
Our top tip? DO consider an insurance broker, like Shepherd Insurance Group, over a captive agent. A captive agent usually offers only one (or very few) insurance carrier(s). If you fit in that carrier’s model, you may get a decent rate. Brokers, conversely, “shop out” your insurance with many different carriers and select the one that offers the best pricing and best coverage FOR YOU! Additionally, if your rate rises in a few years, the broker can simply re-shop it, allowing you to stay with the company in which you already have a relationship. And yes, we realize this is a shameless plug, but it really will save you both time and money!