By the Farnsworth Agency
Car insurance is something that every driver needs to have but sadly in today’s world, many people are overpaying for car insurance on a monthly basis.
Thankfully, you can start saving money on car insurance today by following the tips in this article:
Traffic tickets and accidents drive up car insurance premiums. If you get a ticket, you may be offered the opportunity to go to traffic school to get it dismissed or reduce the number of violation points that go on your driving record. If you can keep the violation off your driving record, the time spent in class could save you hundreds of dollars over several years.
Drop car insurance you don’t need
If you’ve got a clunker, it might be time to drop collision and comprehensive insurance, which pay for damage to your vehicle. Collision insurance pays to repair damage to your car if it crashes into another vehicle or object or flips over. Comprehensive insurance pays if your car is stolen or damaged by storms, vandalism or by hitting an animal such as a deer.
If your car is worth less than your deductible plus the amount you pay for annual coverage, then it’s time to drop them. Collision and comprehensive never pay out more than the car is worth. Evaluate whether it’s worth paying for coverage that may reimburse you only a small amount if anything.
If you drop collision and comprehensive, set aside the money you would have spent in a fund for car repairs or a down payment on a newer car once your clunker conks out.
Drive a car that’s cheap to ensure
Before you buy your next car, check car insurance rates for the models you’re considering. The vehicle you drive affects your car insurance premium, particularly if you buy collision and comprehensive coverage. Safe and moderately priced vehicles such as minivans and small SUVs tend to be cheaper to insure than flashy and expensive cars.
Increase the deductible
You can save money on collision and comprehensive by raising the deductible, the amount the insurance company doesn’t cover when paying for repairs. For example, if the repair bill is $2,000, and you have a $500 deductible, the insurer will pay out $1,500.
NerdWallet research found that raising the deductible from $500 to $1,000 saved about $200 a year, on average. Our research was based on only two sample states, and savings vary by company, so compare quotes with different deductible levels before you decide.
Improve your credit
Your credit is a big factor when car insurance companies calculate how much to charge. It can count even more than your driving record in some cases. (This is not true in California, Hawaii, and Massachusetts, where insurers aren’t allowed to consider credit when setting rates.)
Get Car Insurance Here
For affordable car insurance in Oregon contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.