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Save on car insurance – What you need to know

In a gloomy economic environment, we are all looking for innovative ways to save money. In recent months, large numbers of not only American households, but also households in the developed world, have had to change the way they spend and live.

A major expense that most Americans face is transportation expenses, namely your car. If you own a car, you will need general car insurance. Are you paying too much? You probably are. Take the following checklist to your insurance provider to see what kind of savings you could realize before your next payment.

Take an online driving course

In most states, if you enroll in an online defensive driving course, you can get a discount of 10% or more. Some states don’t recognize these courses, so before taking one, it’s best to check with your insurance company to see what kind of discounts they offer with a defensive driving course. For a list of driving schools in your city or state, visit Wannadrive.

Get a low-risk job

Insurance companies keep more statistics than one might imagine. One of them is accidents by occupation. If your chosen profession has more accidents than average, your premiums will reflect this. Engineers tend to pay lower premiums because they have fewer accidents than other professionals. The simple act of researching and adjusting your job title could be enough to reduce your monthly premium.

Tell them you’re retired

If you are retired, you may qualify for an additional discount. We’ve all seen the ads. This saving applies especially to you if you have a clean driving record. If you’re retired and your insurer doesn’t know about it, you could be missing out on substantial savings.

Join a professional organization or automobile club

Some car organizations and clubs have discounts at all kinds of retail outlets, including hotels and restaurants. Membership in some of these organizations can also help lower your insurance costs. If you are a member of an organization or club, it never hurts to ask your supplier if members of that organization get a discount.

Combine your insurance

Some insurance companies may reduce your premium if you use their company for home and auto insurance. If you currently have two different providers of home and auto insurance, ask them both what kind of premium reduction you are entitled to if you combine your home and auto insurance into one.

Automatic security functions

If you have additional security features on your automobile, your insurance rates could also drop. Look for vehicles equipped with driver and passenger airbags, traction control, good head restraints, anti-lock braking and all-wheel drive are all features that improve your vehicle’s safety performance. Take a list of your vehicle’s safety features to your insurance company and ask specifically how the extra safety features reduce your premiums.

Take on more risk

By increasing your deductible from $400 to $800, for example, you will likely have to pay more in the event of an accident, but you will save considerably on your monthly premium. If you’re a safe driver, the savings you get from paying a lower premium will pay for itself over the year. The amount of coverage you have will not change by increasing your deductible.

Be a good citizen

Just having a good credit score or doing well in school can lower your premiums. Insurance companies have found a correlation between credit score, academic performance and the likelihood of having an accident. If you have a good credit rating and are doing well academically, you may qualify for a discount.

Pay in fewer installments

Insurance companies will charge you a fee for making a payment in installments. The more installments, the more fees you will pay. If you are tax-responsible enough, ask your insurer about different payment options, such as paying once a year, every six months, or paying quarterly. Be careful using this strategy as it is possible to lose your insurance by missing a single payment.

Demand better service

Believe it or not, there is still a certain moral fabric in the business world. If you’ve been with the same insurance company for years, ask them for a discount as a loyal customer. If they refuse, shop around. Another provider may offer better rates or provide you with better information about your insurance needs.

I hope this article has made you a little wiser about buying general car insurance. Use this information and turn it into dollars and cents.

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