I need to reduce my expenses. How can I save money on my car insurance premiums?
It seems everyone today is looking for ways to save money. The first step is in knowing exactly how much you are already paying. People often fail to realize how “drafty” their actual spending has become. For instance, you may think your grocery budget hovers between $800 and $1000 a month. If someone asked what you spend on food expense, that range would be your answer. But consider: does this figure include both eating out and the grocery store? Have you actually kept a tally or diary of your transactions? Have you used multiple methods aimed at lowering that expense?
When attempting to save money on food expense, there are a few easy ways to begin. We commonly hear tips like, “use a list”, “meal plan ahead of time”, “limit trips to the store”. But like with any money strategy, it comes down to:
[*]Know what you actually spend,
[*]Look for ways to save,
Lowering the cost of car insurance premiums is no different. Do you really know what you are currently spending? Are you knowledgeable about the different varieties of coverage available and how they apply best to your situation? Having a car insurance expert who knows the laws of your state, your lifestyle and driving scenario, and can customize your coverage can potentially save you a lot of money each year on premiums.
How can I spend less per month on car insurance?
One way to save on the cost of coverage is to raise the amount of your deductible. This means you are agreeing to “self-insure” up to a certain point. In the event of making a claim, you agree to pay more before the insurance company’s part kicks in. This is a good option for everyone seeking ways to save money on their auto insurance premiums. But there’s a certain category of driver that will especially find this an attractive option:
Do you have a less-than-perfect driving record?
If so, you likely already know your premiums with any company are bound to be high. If you live in a high-density area such as a major city, already-elevated premiums may become impossible for you to afford. Deciding to pay higher deductibles may bring coverage down to manageable levels, enabling you to afford a car and the coverage that keeps you within the law.
What does self-insuring really mean?
It means that while you are saving on your premium, you still need to be prepared to pay for damages. For example: let’s say your car recently sustained $5,000 in damages. If your deductible is $1,000, you need to have that money on hand. The auto shop will bill the insurance company and get their $4k but they won’t release vehicle unless you can pay your part.
Work with insurance agents who can customize your coverage to your need.
If your insurance premiums are too high, remember you still have options. Have your independent insurance agent check to ensure you have the right coverage for your situation. Look at choosing higher deductibles to lower the cost. Keep in mind that it’s better to have a high deductible than no coverage at all. Higher deductibles are quite common today.
Find the best deal and the best customized coverage for your needs. Working with the right insurance agent can help you attain both of those needs. Illinois Insurance Center is one of the Midwest’s fastest growing and most progressive insurance agencies. We are a full service agency, representing many different carriers, providing all lines of insurance for your personal and business needs. Speaking to our professionals can help you customize the best option for you. To get more information, visit. www.illins.com or call 1 708 524 8757.