How to Reduce My Car Insurance Package Costs | Lifehack

We have only owned three cars in my life.

A great Acura Integra,

a Toyota Celica,

and a Toyota Venza.

For 2 of those vehicles, both of that i bought used, I never had comprehensive coverage.

Thorough coverage is insurance that protects your car against damage that is not related to an accident. If your car gets stolen, that's comprehensive coverage. If there's a natural disaster, that's comprehensive coverage. If a riot breaks out along with your car gets turned over, that's comprehensive coverage.

By opting out of comprehensive coverage, I was able to save hundreds of dollars a yr and was fortunate in that my gamble paid off. I never had the guts to eliminate collision coverage though! (covers my car in the event of a collision)

That's just one of the (more riskier) ways you can reduce your auto insurance premiums.

Car insurance can get very expensive, but with these tips you can significantly lower you car insurance expenses without much effort!

(if you read our tips for lowering your homeowners insurance premiums, several will sound familiar -- just miss to Cut Collision and Comprehensive Coverage) for automobile specific)

Full list:

• Request Your Agent
•  Shop Around
• Bundle Up
• Increase Your Insurance deductible
• Join Associations & Businesses
• Maintain Good Credit
• Cut Collision or Comprehensive Coverage
• Update Your Driving Habits
•  Have a Driving Class
• Shop Around Annually

Ask Your Agent

Your insurance broker will really know what you can do to lessen your insurance premiums, including the organizations you can join, the classes you can take, and any modifications to your vehicle or your habits. They have a laundry set of items, just go through and see what you need to do to qualify for every one.

Your agent would like to help you because it means they can keep you as a client. You can save yourself a lot of the time guessing and get tips straight from someone who understands your exact policy.

Don't be afraid to go through the set of discounts to see what you can do to be eligible for them. You can get a discount based on what you do for a living (occupational discount) to paperless statements to having anti-theft systems to being a good pupil. Ask.

Shop Around

Sometimes your agent needs help to get you a lower rate (and sometimes it doesn't matter). In either case, to get a much better offer you might have to get quotes from other insurance companies as a bargaining chip.

Insurance companies make it really easy to get quotes - they can look up a huge amount of information without you having to enter it. With just a message and a few other personal details, GEICO, esurance, and several other companies were able to pull up both of our vehicles. I entered in certain more information and had a quote within minutes that I could screen grab and send to my agent for evaluation.

Bundle Up

Buy your entire policies from one place and you will almost always get a discount. Every company offers anywhere from 5-15% off if you get 2+ policies. Keep searching after that because you don't usually get a bigger percentage off with more policies, you could find that 3rd coverage for cheaper elsewhere.

Boost Your Deductible

Deductibles are what gets deducted against a claim ahead of the insurance provider pays out. If you have a $1, 500 deductible and you have damage to your car of $1, 500, the insurance company can pay you $500. Boost your deductible and lower your premium.

Remember to put the savings in your emergency fund, if you're now partially self-insuring and will need to increase your emergency fund to help bear the load.

Sign up for Associations & Organizations

Years ago, while with GEICO, I joined the Country wide Military Family Association for a discount on my auto policy (it's a Military and Federal Business that gets a discount as part of GEICO's membership discounts program). Account was a mere $20 then (only $15 now), gone to a good cause, and I saved significantly more on my total annual insurance bill (7-8%).

Your insurance carrier will have a set of related organizations that, if you were a part, would afford you a deep discount on your coverage. Ask them, they will provide it if they feature this type of discount, and join if it makes financial sense.

Keep Good Credit

Your credit can be used to determine your premiums and you will reduce your premiums by boosting your credit score.

If you don't have reviewed your credit in a while, review our guide on boosting your credit score for what you have to do.

Cut Collision or Comprehensive Coverage

I minimize comprehensive coverage with my first two cars and could save hundreds each year. If the insurance company doesn't have to cover you in the event of non-collision challenges, they are going to give you a huge discount. It's certainly a gamble, I'd maintain big trouble if a woods fell on my car, but I took on that extra risk and put the savings in my bank account.

If you don't own your vehicle, whether it's over a lease or you have a vehicle take note, you will not have this option. Leases and loans will demand you to have this coverage.

As you look at your coverage, take a look at policy coverage and likely to see precisely how much collision and comprehensive coverage is charging you.

We actually have coverage on our 2011 Toyota Venza and it's charging us $72. 40 (collision) and $17. 15 (comprehensive) per six months, with a $1, 000 allowable. To get a relatively new car worth about $18, 1000 - that coverage makes sense.

We have the same coverage on the 2005 Honda Civic -- $77. 41 (collision) and 20 dollars. 19 (comprehensive). The auto itself is worth about $3, 000 and we're paying $200 a year to get about $2, 1000 in maximum protection. Which a scenario in which removing that coverage makes sense.

If you do this, position the savings in your emergency fund and be fully which you are taking on added risk.

Update Your Traveling Habits

If you drive less than 8, 500 miles a year, you might qualify for a low mileage discount. Many companies give you a low mileage discount and the number of miles will vary, but it's typically in the 7000-8000 region. Some insurance providers offer different discounts structured on the tier you fall into, so you could get a discount - make certain might.

In the event that your driving habits change, let your agent know. You may changed jobs and any office is closer. Perhaps you quit and are now self-employed (yay! congrats! ). Or you started car pooling because you love the planet earth -- let your agent know.

You will need to periodically update your agent on your vehicle odometer, to verify you really are driving less, so you can't just say you drive six, 000 miles when is actually actually 10, 000.

Have a Driving Course

A large number of insurers will give you a discount if you take a defensive traveling course. Some states requirement the discount. In New york city, as part of the Point & Insurance Lowering Program, you will get a 10% reduction of the camp rate of your auto insurance costs annually for three years).

Consult your insurance provider before you sign up for a class because they cost money and time, which means you don't want to be wasting it on a class that refuses to help you save money.

Shop About Annually

Put a repeating event in your work schedule to review your car insurance every year. It's really worth shopping around each season and at minimum, provides you a reason to make contact with your agent to see if there are new discount rates you are qualified for.

In writing this article, I contacted my agent at State Farm and chopped $100 off our gross annual premium because my wife not anymore drives ~20 miles each way to graduate school every day. A few emails again and forth for $22.99? A package I'll take any day.