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The Skinny on Saving Money on Car Insurance

Did you know that you could save up to $500 on car insurance in less than a few hours from your own home?! So why not take a bit of time to review your policy for potential savings!?!?? Or, if you’re fed up with your current insurer, shop around for a new company!!!!! Yes, I am scolding you.

Studies show that people don’t shop for insurance the same way they shop for a new car, laptop, or a rare ‘Batman #1’ comic book. Avoid being part of the studies and read  the skinny on how to save car insurance!

The Skinny:

Check on your insurance often, just don’t act like a stalking ex-boyfriend/girlfriend.

  • Insurance rates & policies change often so check often about any changes to your policy that could be applied to save you money. Teen drivers, new cars, moving, and so much more can potentially cause you to be paying for coverage that you no longer need.
  • Drop coverages that you don’t need anymore.

Always ask for discounts – nicely. Make sure to say please.

  • Your occupation can change the price you have to pay for a discount depending on the ‘risk’.
  • Being in certain professional organizations or auto clubs could net you some discounts, like AAA.
  • Vehicles with features like antilock brakes, automatic seatbelts, & airbags are frequently rewarded with discounts.
  • Some companies offer discounts to drivers who put fewer than a predetermined number of miles on the vehicle each year. Driving less makes financial sense, low milage discount can apply to drivers who carpool to work as well.
  • Stick with the same insurance company and build a reputation with them. Good reputation = discounts.
  • Six months ago, a certain discount may not have existed before and exists now so check for discounts often.

Your children can actually be useful for once in their life!

  • Good grades keeps rates down. Some places offer a C or higher while some others only accept A or B.
  • Have your child wait to get their license if applicable. Companies know teens are more likely to get into accidents so they insure accordingly. Rates plummet around the age of 21.

Take driving courses and no, the go-cart track does not count.

  • A driving course does not mean you are a bad driver, you just want to improve your driving skills! A defensive driving course will take minimal time and save money in the long run. One course could result in a lifetime of savings. Check with your insurance company to see what types of course are acceptable for a discount.

Have a good credit score or build good credit

  • Insurers know that if you pay your bills in a timely fashion and have had the same credit accounts for a long time, you’re more stable than someone who pays late and frequently opens and closes accounts – thus, cheaper insurance.
  • When you see an increase in your credit score don’t let the opportunity slip by to check and see if this credit score improvement will result in an improvement in your auto insurance rates as well.

Keep your records clean of tickets & incidents

  • Well duhhhhhhhhhhhhhhhhhhh
  • The standard is to increase your premium by 40% of the insurer’s base rate after your first at-fault accident, so don’t get into an accident! Though some insurance companies have a “forgive the first accident” policy. The qualifying variables are wide-ranging, so ask your company if it has a forgiveness policy and how to qualify.

Some last few words of wisdom:

  • Shop around and review all your options
  • Car models WILL affect premiums.  Auto insurers have a rating system for every car make and model.
  • The more expensive and higher-performance the car is, the higher the premium will be. Shop for a low-profile car if you want to save on insurance.


Written by lordsinsurancelog

October 12, 2010 at 11:22 pm

Posted in Insurance Tips