Saving Money on Car Insurance: Real Tips That Work

For many people, the car insurance bill is among the top few largest expenses that are paid each month. If you are trying to trim your budget and cut costs, you may be able to trim more than a few dollars off this bill with just a little effort on your part.

First, if it has been more than about six months since you last got car insurance quotes, you should hop online today and get quotes for new coverage from different companies. Most insurance brokers and agents love to but forth their best effort to beat your current insurance price. Be sure to provide them with your current coverage costs for an apples-to-apples quote comparison.

You may want to take a closer look at the current coverage you have, though. If you obtained your current coverage through an over-zealous agent, you may want to ensure you are not over-insured. Each state sets minimum coverage that every driver must carry, and if your coverage amounts are higher than the state’s minimum requirements, you are paying more than you need to. You should keep in mind that by reducing coverage to meet state minimum requirements, there is greater risk. However, if you are like most drivers, you will accept that small amount of risk in exchange for a lower premium.

While getting quotes, ask the agents and brokers for special discounts that you may qualify for. Many companies will offer you a significant reduction on your policy if you open a small life insurance policy with them or transfer over your homeowner’s or renter’s policy. If you do this, be sure that the total cost of insurance on all policies is lower than what you are paying now. In many cases, making such a move can help you to reduce costs on homeowner’s or renter’s policies, too.

It can take some time and effort to shop around for new coverage, and you may find it more convenient to work with an insurance broker. An insurance broker will work on your behalf to shop for quotes, and his or her fees are often paid by the insurance companies rather than you. So with one phone call, you could get the ball rolling on significant savings to your monthly budget.

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