Car Insurance

Lowering Your Car Insurance

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Car insurance is a necessity for every driver, and responsible drivers carry insurance in order to comply with the law as well as for their own protection. Car insurance can be expensive, but there are also some opportunities for lowering your car insurance.

One method of lowering your car insurance significantly is dropping collision coverage on a car once the loan has been paid off. Many banks require collision insurance on a car as long as they are holding the lien. Once the loan has been paid off, you can drop the collision coverage if you can prove that the loan has been paid and it is no longer required. If the car is an older model with a lower resale value, collision insurance may be higher than the cost of repair. You will have to consider several factors including the age and condition of the car and the cost of your deductible before you make this decision.

Most insurance companies offer discounts for vehicles with passive safety devices such as airbags, automatic seat belts and anti-lock brakes. Although airbags are required on new cars, they were optional on cars built before the mid-1990s. Make sure that the car you purchase has as many safety features as possible in order to get the lowest insurance quote. Anti-theft devices will also lower your insurance rate. If your vehicle did not come equipped with an anti-theft device, consider purchasing an after-market device such as an alarm, kill switch, or permanent wheel lock. Your insurance agent will be able to tell you which permanent device qualifies for the discount.

Other discounts that may be available include coupling (homeowner and car insurance through the same company), good student discounts and loyalty discounts. Taking a defensive driving course is another way of lowering your car insurance. Check with your state’s Motor Vehicle bureau or your insurance company for a listing of approved courses.
 

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