State-mandated auto insurance means that drivers have to add a monthly or yearly payment amount to their already-burdened household budgets. The younger and more inexperienced the driver, the higher an insurance premium is likely to be. To find the best price for your family's auto insurance coverage, look into possibilities like these:
1. Apply for any available discounts with appropriate changes in family members' driving status. For example, if a son or daughter turns 21 while on your policy, ask the insurance provider to lower her insurance premium, especially if she has a good driving record. Growing older, getting married, and being a non-smoker may put someone in a category for applicable discounts in their premiums. Check into possible adjustments for medical corrections or improvements like laser eye surgery or weight loss.
2. Inquire about good student discounts. If someone on your policy is attending high school or college and earns an above-average grade level, he or she may be able to get a reduced payment rate for automobile insurance. You may need to produce grade reports or award slips as documentation to support this request, and it may need to be adjusted after each grade term.
3. Find out what other people pay. While you can't really be nosy in asking everyone you know about their auto insurance costs, you can ask a family member or friend, especially if you feel you are paying too much. Instead of asking about particulars, you can simply say, "Are you satisfied with your auto insurance plan?" People may voluntarily offer the kind of information you are looking for. Even if they simply reply in the affirmative, you can ask the name of their providers and contact the companies for quotes on your vehicles.
4. Set higher deductibles on your policy. If you are a careful driver with a good record, you may want to set a $500 deductible rather than $250. This means you will pay more in case of an accident, but over the long run your premiums will cost less with each payment. Do the same with property damage or medical limits, if you feel comfortable doing so.
5. Carry liability rather than comprehensive insurance coverage. This may not be legal in your state, at least until the vehicle is paid in full, so find out before attempting to go this route. Keep in mind that if your car is totaled, you will be without a vehicle to drive since the insurance will not cover any reimbursements to you.
6. Drive a simpler vehicle. The flashier, larger, or more expensive type of car you drive, the higher your insurance rates will be. Purchase or lease a vehicle with fewer luxury options, and hold on to a car several years before purchasing another new one to keep insurance costs as low as possible.
Car insurance must be managed like other budget items. Consider taking steps like these to reduce the amount you are currently paying for insurance while getting the best possible coverage.
