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Top 10 tips for buying and saving on auto insurance

Auto insurance is an expense no driver can afford to live without. If you drive without insurance, you are driving illegally. However, you can save money on your auto insurance if you shop carefully.

Tip 1: Increase your deductible and maximum coverage

You can save money on your auto insurance by increasing your deductible or lowering your maximum coverage. Raising your deductible makes sense, because at a critical point most people can get $500. However, lowering your maximum coverage is dangerous. If you are in a car accident and someone sues you for $500,000 and your liability coverage is only $50,000, will you be able to get the extra $450,000? Probably not. Keep your deductible high but your maximum coverage high.

Tip 2: Consider an umbrella policy

You can buy an umbrella policy that covers your home, its contents, and your car. This can replace comprehensive coverage on your car. These policies save quite a bit each year compared to purchasing these financial products separately.

Tip 3: Protect your credit score

Believe it or not, your credit score has an impact on the cost of your car insurance. Work hard to keep your credit score up. If you have errors on your credit report, correct them before you buy auto insurance.

Tip 4 – Compare prices

This goes without saying, but unfortunately many consumers do not shop with different insurance providers. The cost of auto insurance varies significantly from provider to provider, so take some time to shop around. Use the Internet to help you compare stores conveniently.

Tip 5 – Compare apples to apples

When you get quotes from multiple insurance providers, be sure to compare the same things. Get specific quotes for the coverage amount, deductible amount, and the type of coverage you’re buying. This will help you find the cheapest option.

Tip 6 – Find out about discounts

Auto insurance providers offer many, many discounts to those who know how to take advantage of them. For example, you can lower your rate by one because you rarely drive at a “low mileage” discount. Other common discounts include good driver discounts, well-qualified teen driver discounts, multi-car discounts, discounts for car safety features, and discounts for in-vehicle anti-theft devices.

Tip 7: Consider Dropping Collision

If you drive an older vehicle, you may be paying more for collision coverage than the car is worth. If you have a crash, your insurance provider will only give you the value of the car, not the full replacement cost. It may be better to put the premium money in a savings account to pay for a new car than to continue insuring it.

Tip 8 – Learn how to file a claim

Before you buy insurance, make sure you know how the company handles the claims process. This will help you know whether or not the insurance is good value for money. Be sure to get your choice of repair services if you need them.

Tip 9 – Combine policies

If you have more than one insurance policy that you can combine into one premium, do so. For example, if your teen has insurance on his car and you also have insurance on yours, combine the two. Both will save money. You can also save money by purchasing multiple insurance products from the same insurance provider.

Tip 10: Compare insurance costs before buying a car

If you’re shopping for a new vehicle, compare the cost of car insurance on the vehicles you’re considering before you buy. Two cars that look very similar to you will look very different to the insurance provider because of their safety records. You can save a lot of money by buying a car that has a lower insurance premium.

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