If you’re paying a lot for your auto insurance, you may want to shop around and compare prices to see if you can get a better deal before you buy. You may also be eligible for discounts on your auto insurance policy. There are a number of ways you can save on your car insurance.
Auto Insurance Discounts
You may be eligible for auto insurance discounts. The most common discounts for car insurance include association or car club memberships, having multiple policies with the same insurance company, senior citizen discounts, safety and security equipment (like airbags, car alarms and seat belts), a clean driving record or completing a defensive driver course. Students under 25 can also receive discounts if they have very good to excellent grades. New cars may also be eligible for a better rate on car insurance premiums. All of these auto insurance discounts vary by insurance company. There may be more or less discounts available depending upon where you live and who insures your vehicle.
Increase Your Deductibles to Save Money on Auto Insurance
If you increase your deductibles you can also save money on your auto insurance policy. Insurance agents and insurance comparison websites will encourage you to select standard options for deductibles, but you have the freedom to choose the coverages you want to save money on your auto insurance. You can increase your comprehensive and collision deductibles and shave money off of your auto insurance premiums. You can also eliminate comprehensive and collision coverages altogether and just get a “liability only” auto insurance policy to save money. Before you increase your deductibles or drop comp and collision, make sure you can afford to pay for an accident out of pocket.
Compare Auto Insurance Policy Costs Before You Buy
Shop online to compare auto insurance policy prices before you buy a policy. You can use comparison websites to find insurance at the best rates. Before you sign up for the least expensive policy, make sure you’ve selected an insurance company that provides excellent customer service and superior claims service. You can research consumer reviews of insurance companies online in forums, blogs and websites. It’s always a good idea to talk to friends and family members before you buy auto insurance. Find out who they use for their car insurance and if they like the company.
There is nothing more exciting for an antique car collector than cruising down the road in an antique car. However, before you get to enjoy your classic vehicle, you must protect your interest by purchasing classic car insurance.
Unlike your everyday automobile insurance, the underwriting for classic car insurance is slightly different. It is strongly advised to use an insurance company whose specialty is classic and antique cars. A good place to begin looking for such a company is buyclassiccars.com. They have a listing of classic car insurers in the US, Canada and UK.
Here are a few things to be aware of when purchasing classic car insurance:
Usage Ensure that your insurance provides coverage for the way you use your classic car. In addition to driving it to and from car shows, do you use it to run an occasional errand? Let’s face it, there is a ‘look at me’ quality to classic cars that driving them to and from car shows alone may not be enough. The additional ‘errand’ exposure is taken into consideration when underwriting a classic car, so before you get ready to show off your car buy purchasing a gallon of milk at the local store; make sure your car is covered for such trips.
Garaging/Storage: Know how your insurance company wants you to store your classic car. Some policies require the car to be stored in a locked garage when not being driven. Many companies do not provide coverage if the vehicle is left unattended in a parking lot. Taking a long weekend trip in your antique car and leaving it in the hotel parking lot overnight might be a reason to deny coverage in the event of a loss.
- Valuation: The classic car valuation clause is a bit different than what you would find on your family car. There are three different options to choose from:
- Actual Cash Value: This means the insurer will use the current market value of the car and deduct depreciation. This type of valuation is fine for the family mini-van, but not for your classic car. If your classic car is highly valued, this type of clause is not the way to go. If your car is over 20 years old, depreciating the current value will not adequately reimburse you in the event of a loss.
- Stated Amount: This type of valuation sets the maximum amount your insurance policy will pay in the event of a claim. It will pay the lesser of the following: 1) Stated amount, 2) the cost to repair the vehicle (but will not exceed the stated amount), or 3) the actual cash value. Because this valuation does not address the true value of your classic vehicle, this is not the recommended way to go.
- Agreed Value: This valuation is just as it sounds. Both you and the insurance company agree upon the fair market value of the vehicle prior to binding coverage. At each policy renewal, the vehicle value is reviewed as the market value may fluctuate from year to year. This valuation works the best for all parties involved.
Be sure to review the policy terms and conditions with your insurance agent to ensure your investment is properly protected.