Wise Car Owners Know How to Get More Insurance for Their Money

You’ve spent a lot of money on your car and in fact, you may still be paying it off, so you want to make sure you are not paying a penny more on car insurance than you have to.

Wise car owners know how to get maximum car insurance coverage for less. It’s not too late to get in on the best deals. Compare rates from GEICO, Esurance, State Farm, Progressive and more!

What you need to know

For starters, you have to know how to review car insurance policies before signing on. Many drivers think all auto insurance companies are the same. Not so. It takes more than comparing quotes to get the best deal. Check out the following SmartTips.

Save up to 50% with car insurance discounts

There are several ways to get more for your money when you understand the discounts that are available. Take a few minutes to compare discounted premiums vs. regular premiums to make sure you’re getting the best price.

1. A Good Driving Record Counts: If you are considered to be a good driver, auto insurance premiums are reduced. The discounted amount depends on the insurance company, so always compare!

2. Your Credit Score Can Make a Difference: This surprises most everyone - a study conducted by the FTC (Federal Trade Commission) found that credit scores are effective in determining whether someone is a high- or low-risk for auto insurance also. Insurance companies' credit scores are based on FICO scores that are applied to their own internal credit models. (If you live in California, Hawaii or Massachusetts then your credit score does not impact your premium.)

3. Anti-Theft Devices: If an anti-theft device, such as a LoJack or a car alarm, is installed on your auto you may be able to receive a discount of around 25%. Compare insurance companies to get the best discount.

4. How Many Cars are Being Insured? If you have more than one car in the family that is being insured, it is always a better deal to insure all of them with the same company. Find out which insurance companies provide multiple drivers and car discounts.

5. How Often Do You Drive? If you are driving less than 10,000-12,000 miles per year, you may qualify for a low-usage discount of up to 30%.

6. ZIP code Discount: Believe it or not, policy premiums are higher in ZIP codes that represent higher property values. Keep that in mind, the next time you move as the difference can be in the \$100s.

7. Your Age: As you get older and have a few more years of driving experience, insurance premiums decrease. Specifically, if you are in the 30 to 65 age category you can expect an age discount. Before the age of 30 and after the age of 65, there are more risks involved, therefore higher premiums.

8. Homeowner? Some car insurance companies offer homeowner discounts because they are often less risky customers. If you are a homeowner, you can often use it as leverage to get a better rate. When you compare a few insurance quotes you can see who is offering this type of discount.

Higher Deductible Means Savings

Common deductible amounts are $100, $250, and \$500. The higher the deductible, the lower the premium, however, make sure you can afford the deductible if an accident or theft should occur. It is great to pay a lower monthly premium as long as the higher deductible doesn’t hinder your financial situation in the event of an incident.

Collision & Comprehensive Insurance - Too Much or Too Little

If you’re driving an old car, it may be best to drop the collision and comprehensive insurance on your policy. Remember, collision insurance is meant to pay for any damage done to your car from an accident. Comprehensive insurance is intended to reimburse you if your car is stolen or damaged from incidents other than car accidents, such as vandalism, car theft, etc.

Only pay for collision or comprehensive insurance if your current auto is worth fixing or replacing.

The 10% Rule: If the cost of collision and comprehensive coverage is higher than 10% of the “book value” of your car, then drop the coverage. It is not worth it if the value of the car is less than the cost of coverage.

Conversely, if the auto was pricey and considered high value then it pays to make sure it is amply covered.