Let's start with the obvious- one of the best ways to keep your auto insurance costs down is to have a safe driving record.
However, here are some other ideas as to what you can do to lower your auto insurance premiums.
- Shop Around
Prices vary from company to company, so it pays to shop around. Get at least three price quotes. The advantage to working with an independednt agent like us is that we can give you prices from many different carriers, saving you valuable time and effort.
- Before You Buy a Car, Compare Insurance Costs
Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).
- Ask For Higher Deductibles
Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs. For example, increasing your deductible from $500 to $1000 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $2500 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.
- Reduce Coverage on Older Cars
Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book (www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.
- Buy Your Homeowners and Auto Coverage from the Same Insurer
Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-term customers. But it still makes sense to let us quote you with all companies regardless. You may save money buying from different insurance companies, compared with a multipolicy discount.
- Maintain a Good Credit Record
Establishing a solid credit history can cut your insurance costs. Insurers in Massachusetts are forbidden to use credit scoring for auto insurance but in can factor into your overall rate when bundling. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
- Take Advantage of Low Mileage Discounts
Some companies offer discounts to motorists who drive a lower-than-average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work.
- Ask About Group Insurance Plans
Some companies offer reductions to drivers who get insurance through a group plan from their employers, as well as through professional, business and alumni groups and associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible. Some examples include AAA, AARP, and SBLI Insurance.
- Seek Out Other Discounts
Companies offer discounts to policyholders who have not had any accidents or moving violations for several years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a driver's education course or is away at college without a car, you may also qualify for a lower rate.
When you comparison shop, inquire about discounts for the following: *
Auto and Homeowners Coverage with the Same Company
College Students away from Home
Defensive Driving Courses
Drivers Ed Courses
Low Annual Mileage
More than one car
No Accidents in 3 Years
No Moving Violations in 3 Years
Student Drivers with Good Grades
*The discounts listed may not be available in all states or from all insurance companies.
The key to savings is not the discounts, but the final overall price. A company that offers fewer discounts may still have a lower overall price which is why we run all available scenarios for our clients.
If you would like further information on auto insurance or any other policies you may have, call us at 781-289-7445. You can also text us a picture of your policy(s) to 781-289-7445 or email them to email@example.com. We'd be happy to offer you a second opinion or provide options that best suit your situation.