If you are like most people then you don’t review your insurance policy every year, you simply put it on auto-pay and forget about it.
Unfortunately, insurance isn’t getting any cheaper. In 2020, the average driver will spend an astonishing $1,550 on auto insurance. If you own a home, then you need homeowner’s insurance. The average annual homeowner’s insurance premium is approximately $1,200.
That being said, you don’t need to accept high rates from insurance companies. There are plenty of ways to save some money on your auto insurance.
Insurance companies are happy when you make their job a little easier for them. They will offer discounts and lower premiums for doing so. One of the easiest ways you can do that is to change how (and when) you pay for your insurance.
Here are a few easy changes you can make that will save you money on premiums:
Pay In Full: Instead of sending premium payments each month, you might want to think about paying for your insurance in full once a year or every six months. It’s almost always cheaper to get off a monthly payment plan since it costs the insurance company to process your payments every single month.
Automatic Payments: Some insurance companies will give you a discount for setting up automatic payments or going paperless. Doing so also helps you avoid missing payments and gives you one less piece of mail to go through.
Perhaps the easiest way to lower your insurance premiums is by raising the deductibles on your policies.
Your deductible is simply the amount you’d pay out of pocket before your insurance kicks in. The lower your deductible is, the more risk your insurance company accepts to insure you. That means they’ll charge you higher premiums for that extra risk. If you are a good driver and you have money in the bank, you can probably afford to take on more of that risk yourself by raising your deductible.
Raising your deductible by a few hundred dollars can make a big difference. By raising your auto insurance deductible from $500 to $1,000, for example, you could save around 13% on your premiums. So if you’re paying $1,500 each year on car insurance and raise your deductible from $500 to $1,000, you could end up saving around $200 every single year.
Do you own a car, boat and a home? Most insurance companies will reward you with lower premiums just for keeping multiple policies under the same roof. If you can’t find a better rate with another insurance company, bundling your policies together might be a quick way to save 15-20% off your insurance bill without breaking a sweat.
And if your family has two or three cars in the driveway, you could earn a multi-car discount by having them all covered under the same policy.
Are you a college student? Did you serve in the military? Have you never been in an accident? There’s probably a discount out there for you! There are potentially several discounts you might qualify for—you just have to see what’s available.
While having the right insurance in place is crucial to your financial plan, you should understand what is required, nice to have, and coverage you don’t really need.
Many people get caught up in all the new car gadgets and amenities but they don’t take into consideration the cost to insure a new car. New cars are more expensive to repair and replace, that means it costs more to insure them too.
Data suggest that you would save about 18% on car insurance if you bought a five-year-old vehicle instead of the brand-new model. Keep that in mind when you’re out there looking for a new ride.
If you are like most people you dont shop around for insurance. Why is that? We shop around for everything else, but when it comes to insurance we just don’t want to deal with the paperwork or the time. One-third of Americans with homeowner’s or car insurance have never shopped for better coverage.
Working with a California Independent Insurance Agent like Peninsula General can make the process easy. We will shop your insurance for you to find the right coverage at the best price, which will save you time and money.
If you have questions about your California Auto, Home or Business Insurance, please do not hesitate to talk to one of our experienced agents. Peninsula General is a leading Mercury Insurance Agency in Los Angeles.
Call Peninsula General at (310) 539-2533.
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