Save Money on Your Family’s Car Insurance – Helpful Tips

June 19, 2012

Although car insurance is a necessity, there are several ways to manage the costs and fit it in the family budget. Insurance companies today offer a wide variety of discounts and options to help save some money on your family’s car insurance. If you’re looking to lower your insurance bill, see if some of these tips might work for you.

Bring Your Policies Together and Save

Since Insurance companies are interested in as much of your business as they can get, they may offer incentives to those who have more than one policy with their company. You can lower your car insurance rates by having more than one vehicle insured with the same company, but that isn’t the only option. Most insurance companies will also give you a discount on your car insurance if you insure your home with them as well.

And consider taking advantage of multi-vehicle policies even if you don’t have a second car. Check with your insurance company – you could see a discount on your car insurance for bringing your boat, motorcycle, snowmobile or other vehicle over to the same company.

In addition to the savings, you will also have the convenience of having all of your policies in one place. That means talking to one insurance company and in some cases even paying just one bill.

Investigate All Available Discounts

There are numerous discounts that most insurance companies offer that help your family save on car insurance needs. Although insuring young drivers may mean paying high insurance rates, there are ways to reduce the premium. If those young drivers are also good students, you could see a fairly significant savings on your car insurance by qualifying them for a good student discount, offered by some insurance companies.

Another way to get a discount for a young driver is to have them take a driver education course from an accredited driving school. Some insurance companies even have their own course, in some cases a video that they must watch, for which they will offer a discount.

You should also be sure to ask the company for a list of available discounts and make sure you are receiving all of the ones for which you qualify. Look for things like discounts for safety features on your car and other discounts that might not automatically apply.

Get a Quote before you Buy

You may be tempted to give in to your teenager that wants a brand new sports car, but before you say yes, get a quote. The type of car you drive makes a difference in how much you pay for auto insurance, and a new car, especially if it is a sports car, may cost more. Combined with the already higher rates paid by young drivers, this results in a pricey policy.

Consider a safe, economical used car as a first car for young drivers. As exciting as it is for your teen to own a fun car, you probably would want to avoid paying the insurance bill that goes along with that. And it isn’t just young drivers who should quote a car before they commit to buying it. Too often people buy without checking the insurance rates that accompany it. Smart buyers quote the rates first and make it part of the car shopping process. This small step may save your family a lot of money on your policies.

Shop Around for Your Insurance

If you’ve been with your current insurance company for a long time, you are probably receiving a longevity discount, which is a great way to save. However, it is not necessarily the case that you are getting the best deal. With the auto insurance market so competitive these days, rates are always changing and the longevity discount might not be getting you as good a deal you could find elsewhere.

It’s a good idea to shop around for car insurance quotes on a regular basis to compare what you are currently paying to what is out there. You don’t have to switch every time you get a quote, but doing the comparisons can help you feel certain you’re getting a good deal. The process to request a few quotes online takes only a few minutes, thanks to systems that let you get quotes from multiple insurance companies at once.

Car insurance is one of any family’s bigger expenses, and all the small ways to save can add up to making a big difference to the family budget. Make sure you’re getting all the discounts you deserve, and that you are paying a fair price by shopping around and taking the time to review your policy regularly. Putting in a small effort now will result in significant savings in the future.