Are you searching for ways to save money on car insurance? If so, you’ve come to the right place! In this article we will share with you real ways you can save money on car insurance for every driver in your family.
Strategies for saving money on car insurance
Mind your credit score. One of the most overlooked ways to save money on insurance is to have a high credit score, according to James Garvey, CEO of Self Lender, a site that helps consumers build their credit score. “In all but three states, it is legal for insurance companies to underwrite your insurance policies with your credit score,” he says. “While this may seem unfair, it’s unfortunately the reality that most Americans experience today.” But if you live in California, Hawaii or Massachusetts, then your credit score won’t be eligible for underwriting your policy.
Ask your employer. “One type of insurance discount that many people never even think about can come from an employer,” says Joel Ohman, founder of CarInsuranceComparison.com. “Many large companies offer various discounts to their employees if they purchase a policy through a preferred insurance provider that the employer may have some type of special arrangement with. Often employees don’t even think to check with their employer or they forget to bring it up to the insurer.”
Play it safe. That’s the advice of insurance agent Jenny Saint Preux. That includes installing a security system. “Even a passively enabled security system can afford savings on your premium,” she says. “Monitored systems, such as LoJack and OnStar, generally afford greater savings.” You can also complete a defensive driving course, which can lower your premiums, she says.
Drive carefully. “Believe it or not, a bad driving record, in addition to a bad financial credit report, may cause the underwriter to rate the case, meaning they will add an additional premium due to the risk of the insured that the carrier is undertaking,” explains Mark Charnet, founder and CEO of American Prosperity Group. So drive safely — and don’t expect a discount if you have a string of moving violations.
Cast a wide net. Gabi is just one potential source for saving money on car insurance. Last spring, personal finance consultant Kassandra Dasentmy turned to PolicyGenius.com for help. “We had coverage with State Farm for several years but felt that we could find a cheaper alternative,” she says. PolicyGenius.com came through. ” we are now paying less than half the amount in monthly premiums,” she says. (Alas, when I try to use PolicyGenius, it tells me there’s a waiting list in my home state of Arizona. Wow, today is not my day to save money on car insurance!)
Maybe you’re asking the wrong question
“Insurance is often purchased as a commodity,” explains Rob Drury, executive director of the Association of Christian Financial Advisors, “price being the eventual determining factor in the decision.”
But maybe that’s the wrong approach.
“In reality, cost is perhaps the least important consideration,” he says.
Why? Premiums are actuarial; that is, they’re carefully and conservatively calculated based entirely on risk.
In other words, there is no such thing as expensive or cheap insurance. If a premium is low, it represents a minimal risk that is either unlikely to occur, or would result in minimal expense. If it is high, it represents a peril that is likely to occur or is exceptionally costly to rectify.
“If one policy’s premium is substantially less than another’s, it is a clear sign that the coverage is relatively inadequate,” he says.
Put differently, if you find a cheap policy, maybe you should ask: What is it missing? You’ll want to find out now — and not by accident.
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For an affordable Central Oregon Car Insurance quote contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here!