I thought, "Money is a gift that's always in style." So, this week, I'll give you the gift of five trusted ways to lower your auto insurance premiums. Ways to put money back in your pocket.
Let's unwrap this gift together:
1. Compare cars
How much does it cost to insure car A versus car B? Knowing ahead of time can help you save a lot of money. Here’s what your insurance company looks at when deciding how much to charge:
Vehicle age: It costs more to replace or repair a newer vehicle. So premiums may be higher.
Vehicle size: Larger cars are often safer, and cheaper, to insure. But be careful; overly powerful engines relative to body size can cost more too. Zero to really fast in six seconds is expensive.
Vehicle theft: If your car makes a thief’s mouth water, it’s going to cost you more to insure.
Vehicle safety: Injuries are very expensive. Insurance companies look at safety ratings to determine how well your car protects passengers. Lower rates are often tied to good crash test performance results.
Your agent can help you decide which car is right for your insurance budget.
2. Raise deductibles
Raising deductibles is a quick and easy way to lower premiums. Raising deductibles even a little bit can make a big difference. You may even consider dropping collision coverage on very old cars. Just be sure that you have the money set aside to pay the deductible (or replace the older car) in case of an accident.
3. Combine policies
Most companies give a big discount for combining your auto policy with a homeowners or renters policy. But many people still don’t combine policies. Now might be a good time to revisit that decision.
4. Review discounts
You may think that you’re getting all the discounts for which you are eligible. But I find, when talking with new customers, that’s not always the case. Your current company may offer new discounts, but you “missed the memo.” Or, a different company may have a unique discount that can save you money, but you need to switch your policy to receive it. Which brings me to my final way to save money.
5. Shop around
If you haven’t “shopped your policy” in a while, now might be a good time to consider doing so. Getting a new quote requires that you meet with an agent and review your current policy. This review may be long overdue, and it could save you from being underinsured. Make sure that you are getting the best rate for the right coverage.
Final thought: Get help to assemble this gift.
Like other gifts, saving money on your insurance may have “some assembly required.” Contact an experienced local agent here in Napa Valley to review your policy. Let a professional help you. You’ll be glad you did. Happy Holidays!
Bruce Sackrison is an insurance property and casualty broker affiliated with Professional Insurance Associates helping clients with insurance needs for personal, commercial and business insurance. Bruce can be reached at 707-931-0186, firstname.lastname@example.org