5 Simple Ways to Save Money on Your Car Insurance

1. Bundle

This might seem obvious, but tons of people don't bundle their insurance properly. The biggest discount offered by many insurance companies is their multi-policy discount. You can stack this discount for savings up to 30% with some companies by combining all of you insurance with them. It really does pay to have you auto, home, renters, condo or life insurance with the same company. If you have business insurance that will also increase the bundle discount with most companies. So make sure to ask your agent and get this valuable discount. If you have you car insurance with a company that only does auto and does not offer home insurance you need to move it ASAP. We see this a lot as some companies whom I'll leave name less (think of a lizard) simply only sell auto insurance. Nine times out of ten we can save these folks lots of money by combining all their insurance and getting them a bundle or multi-policy discount.

2. Usage

Almost every time we review this with our customers it is not correct. Things change and so does the amount of miles you drive to work and annually. Most companies base their rates on usage so be sure to take a few minutes and review this with your agent. The saving might not be huge but every dollar adds up and you need to makes sure they have accurate information on how much you drive and how far you drive to work. If you have a vehicle that you only use it the summer or the winter this can be a great way to save money. We recommend this is reviewed at least once a year or whenever you have a life change like a new job or retirement. Very simple to do and only takes a few minutes.

3. Telematics

What is heck is this right? Telematics is a fancy word for your smart phone saving you money on your car insurance. Basically it's an app that you install on your smart phone and you get a discount on your car insurance. This is new technology and most companies now offer it. The app will track your driving habits, like speeding, hard braking and distance traveled. It will also know if you use your phone while driving. Think don't text and drive. The discount varies by company but can be up to 20% per driver so ask and see if you can get this new and exciting discount. It is optional with most companies and we feel it is the future of car insurance.

4. Coverage

This is another one that seems simple but can save you big bucks. A good insurance agent can review all of the available coverages for your unique situation and suggest ways to save money. Things like rental car and towing are often not needed and expensive. All too often we see clients with full coverage on older vehicles wasting money. Things like GAP coverage should be reviewed annually and removed if they are not necessary. A good agent can save you serious money here so take advantage of their free advice.

5. Credit

What does your credit score have to do with the cost of your car insurance? Everything. Many companies put more emphasis on your credit score than your actual driving record. I'm not saying I agree with this, but it's the truth. So, be sure to shore up your credit score at every opportunity. I'm not going to talk about how to do this because it's a huge discussion. Just google how to improve your credit score, and get that thing higher. Trust me, it will save you money on your car insurance! Also, ask your agent about discounts for paying in full, some companies give up to 10% off your car insurance if you pay the 6 month or annual premium in full.