Car insurance can be one of the biggest budget items after housing costs. If you’re ever tempted to skip your auto insurance, consider the costs of not having it. If you’re in an accident and don’t have insurance, you could be responsible for medical bills, property damage to the other car and your own costs. In Florida, if you are caught driving without insurance, you could lose your license and registration. Instead of lamenting over the high price of insurance, look for ways that you can save money on your costs. Here are eight ways to help you find affordable car insurance.
Compare Prices Among Providers
Shopping around for car insurance can be a good way to find the best rates. If it seems overwhelming, work with an insurance agent to help you compare policies and find one that meets your needs. Find an independent agent that works with multiple insurers to give you options. Always ask for the same coverage between companies to be able to compare apples to apples. Also, shop around every couple of years because the marketplace and your demographics change.
Look For Discounts
Ask your agent about discounts that could help you get better rates. Some professions, such as teachers, may get special discounts. Taking a defensive driving class can offer a discount. Bundling insurance with your homeowner’s policy may provide another discount. Paying your insurance in full every six months can help you save money. Many insurers now have discounts for going paperless or auto-billing options. Each discount may not be much, but together, they can really add up.
Examine Local Options
In Florida, you must find an insurance company that is licensed to sell insurance in the state. Going to a local office and working with an agent who understands the insurance market can help you get the best rates. Don’t assume that one company will cost more, or less, than another. One company may deem you as a high-risk client, while another may not.
Raise Your Deductible
Examine your insurance to make sure you only pay for what you need. First, check your deductible, the amount of money you pay out-of-pocket before your insurance pays. The lower your deductible, the higher the premium. You could get a huge discount by bumping your deductible up from $500, which is a typical amount, even up to $1000. Just remember to have that amount in savings in case you do get in an accident.
Make sure to carry the state minimum insurance but look at any add-ons you have. If you have an older car, you may not need to purchase comprehensive or collision insurance. If your budget is really tight, you might want to drop uninsured or underinsured motorist coverage. If you’re paying extra for roadside assistance or other features, dropping those things can ease your rates. You should always weigh the risks versus the rewards. Carrying only the minimum insurance can help you save money, but if you’re in an accident, your insurance may not cover all the damages.
Consider Pay-Per-Mile
If you log under 12,000 miles per year on your car, consider programs that base insurance on your mileage. Some companies track your driving for possible discounts. Other programs give you discounts for driving safely. Unfortunately, not all states have these programs, so you do need to check with the company.
Pay Your Bills on Time
Yes, your credit score affects your insurance rates. There’s a direct correlation between a person’s credit score and the number of claims that are filed. Drivers with higher credit scores tend to file fewer claims. There are states that don’t allow insurers to use your credit score to base an insurance quote, but Florida is not one of them. Work on improving your credit to reduce your insurance rates. When you pay your bills on time, you avoid late fees, which can also save you money.
Keep a Clean Driving Record
Your driving record affects your insurance. Don’t speed. Avoid getting moving violations. The fewer tickets you have on your driving report, the more likely you are to get better rates. If you are an impatient driver or one that takes risks, learn ways to slow down on the road and drive less aggressively. Allow plenty of time to get to your destination instead of speeding. Don’t forget to turn your cell phone off while driving. Pull over to respond to texts.
Know What Items Affect Insurance Rates
Your driving record is just one that affects your insurance rates. Your age and gender factor in. Drivers who are married often get lower rates, because they tend to take fewer risks. Your ZIP code may play a factor in insurance rates. People who live in areas with more accidents may pay more just based on the place you live. Your car also plays a part in how much your insurance costs. Vehicles that have safety features can be less expensive to insure. When you’re buying a new vehicle, ask about insurance rates on specific models before you buy. Smaller cars may have higher rates, because larger vehicles are usually safer. Driving an older car that is paid off may help you save some money on your insurance rates if you’re on a tight budget.
Maintain Insurance
Dropping your insurance coverage costs you in many different ways. Insurance companies want to know that you keep your coverage to protect your assets. Many times, your insurance will drop over time if you always have coverage on your vehicle and have a good driving record. Not having insurance can hurt your sense of peace. Don’t cancel one policy until your new policy is in place. A gap in insurance can cost you more when you renew your policy.
Remember the costs associated with not having insurance. You don’t want to put your entire financial future at risk by not having insurance if you get in an accident. Get cheap car insurance rather than go without.
Shop with Affordable Car Insurance Tampa for a great price on auto insurance in Tampa that suits your needs. Whether you’re a new driver, have a bad driving history or other issues, we explore every possibility to find you the insurance that keeps you legal.
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