How to get the lowest car insurance rates and save big money starting today!
I have found Progressive to have the lowest rates and best service and highly recommend them.
The recession has hit most of us quite hard. If you are like most Americans you probably drive a newer car and have a loan on it that requires higher levels of insurance and collision coverage. Now the funny thing is when you buy a newer car or brand-new car at the car dealer they somehow tend to forget to tell you that your payments on the car aren’t the actual total of you’re monthly payments. You also have to pay for your car insurance which obviously is to be much higher on a newer car than a older, used car.
Sometimes, actually most of the time, by buying a new car your car insurance can actually double or even quadruple. This is why books like the automatic millionaire and other common sense how to get out of debt books tell you that you should drive an older vehicle. The reason here is simple because the older vehicle, especially if it’s paid for, requires less insurance coverage or you can even drop the collision if it’s completely paid for.
Now you might say why on earth would you drop collision coverage and what if someone hits me. Who is going to pay to fix the repairs? Well it all depends on did they hit you or did you hit them? You see the police will show up at the scene and write a car accident report and usually they’re pretty good about finding out who was at fault. If the other party is at fault than their insurance pays for the bill – period. If you’re at fault then you do.
Now this might sound bad, but think about it, if your car is worth less than around $6000 or so this is actually a good idea because you will save probably around $1500-$2500 per year, and according to the Highway Traffic Safety Institute (HTSI), your odds of being involved in a car accident run at about three in your lifetime. So if you are a pocket the difference each year you more than make out ahead.
So over a period of three years you will save enough to buy yourself another similar vehicle if you get involved in an accident that’s your fault. Now it gets better, according to the HTSI, the odds of you being in an accident that’s actually your fault is only one out of those three occurrences. So in other words you’re far better off driving cheaper or used vehicle that you’ve paid cash for so you don’t have any car payment story about plus your car insurance payments will be very minimal because you no longer need higher amounts of coverage determined by the banks and you can drop the collision coverage.
So the first and best way to save in your car insurance rates is to drive an older vehicle. Another way is to, just like with your credit, check your driving record and be a good defensive driver. Forget about offensive driving. Keep at least four car lengths between you and the car in front of you where possible. Try not to speed and stick close to the posted speed limits.
Another great idea is if you do have points on your drivers license for anything from speeding to any of a myriad of other charges, take a defensive driving course. These are usually offered for free or little cost by your local Department of Transportation, DMV and even community colleges. By taking one of these courses you can drop 2 to 3 points off for license which will have an immediate impact on your car insurance rates. This can save you hundreds of dollars each and every year right off the bat.
One more way to save money is to a little research on the vehicle you’re driving or will be driving. Don’t buy a sporty two-door car that has very high insurance rates. Sometimes cars don’t have high insurance rates because of fast driving. It could be as simple as the fact that it is a high theft car like a Honda Accord or Honda Civic. For some reason these cars are in the top 10 in stolen cars in the US every single year – so by avoiding them and buying a car that’s not in the top 10 in stolen cars you will probaby save on your car insurance again.
Now when you equip all the ideas above together your monthly savings on car insurance payments and rates can be quite huge or staggering even. The difference could literally amount to $1500 to even $3000 per year. That’s a lot of money and a lot of savings. One last idea that everyone should abide by is shop your car insurance rates around. You could easily save a lot of money just by going from one car insurance company to another. Usually you’ll find Progressive and Geico have the best rates out there.
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Thanks for the great money saving tips.
Great info on saving money on car insurance.