CHARLOTTE, N.C., April 18, 2007 – Car insurance can be a burdensome expense but one you’re glad you’ve kept current when an accident occurs. Going without insurance is never advisable – and is even against the law in many states – so what are some ways you can save yourself some money while still protecting yourself and your car?
LendingTree.com shares the following tips on saving money on car insurance:
One of your first steps should be to shop around for a better car insurance rate. Call agents at various companies for rate quotes. Be sure you’re comparing apples to apples and that the coverage is the same. Auto insurance premiums for the exact same coverage on a car can vary widely, or can be pennies apart, depending on the companies you’re comparing. Also, consider talking to friends about what insurance they have and how well that policy is working for them.
Drive more safely.
This is an obvious option, but one many may not think of. Most insurers will give what they deem “good drivers” a price break if they maintain a clean driving record for a specified period of time. Please note: driving criteria can vary from company to company so make sure you know what your status is with each of them.
This is not an option for everyone, but if you don’t drive much, you may qualify for a low-mileage discount. Ask your insurer if they offer this discount and if so, find out what the parameters are.
Keep an eye on your credit report.
Your credit history is an important factor auto insurance companies use to set your rate. Studies have shown a correlation between your credit history and the risk to an insurance company. Maintaining a good credit history will give you access to lower auto insurance rates.
Increase your deductible.
For many people, raising the deductible on their auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible if and when a situation arises where you need to use your insurance.
Lower coverage amounts.
You can also choose to reduce the amounts of certain types of coverage, but be careful that you aren’t inadequately insured. Always keep your liability coverage at as high a level as possible because this is where you can have the greatest loss. You may be able to lower your coverage amount in other areas (such as collision and comprehensive), but don’t rush into such a decision just to save a few bucks. The costs could far outweigh the savings. Talk it over with a licensed agent first.
About LendingTree, LLC
LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, credit cards and high-yield savings accounts via www.lendingtree.com and 800-555-TREE.
Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC is part of IAC Financial Services and Real Estate, an operating company of IAC, which also owns or operates LendingTree Loans sm, LendingTree Settlement Services, LLC, GetSmart®, RealEstate.comsm, Domania®, and iNest Realty, Inc.