Everyone is always looking for ways to reduce the cost of their auto insurance. That can be difficult due to the rising cost of vehicles, the increased amount of litigation and the need for families to have additional cars for their children. But there are strategies you can consider to reduce your insurance rates, especially if you get help from your agent at J.P. Perry Insurance. Here is a list of cost cutting tips when shopping for auto insurance.
Bundling Insurance Policies: Probably the most popular and well-known strategy for saving on insurance is by bundling several policies with one insurance company. That usually means buying both your auto and homeowners' from the same company. Your J.P. Perry agent can determine if you quality for the bundling strategy and if it will save you enough money to go in that direction.
Multiple Cars/ Multiple Drivers: Like bundling, you could possibly get discounts if you buy auto policies for more than one person in your family. Generally, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may qualify if they jointly own the vehicle. If one of your drivers is a teenager, you may have to pay higher rates, but even those rates could be reduced if your teenager qualifies for a "good student discount" (usually based on grades).
Safe Driving Record: If you have a history of safe driving, then depending on the insurance company, you may be eligible for a "safe driving discount." You need to make sure you don't have points assessed against you for traffic violations before you apply for this discount.
Take a Defensive Driving Course: Sometimes insurance companies will offer discounts for those who complete an approved defensive driving course. You need to ask your J.P. Perry agent to make sure the insurance company will accept the course (different states have different accreditation). Plus, your agent will need to determine if the savings will outweigh the cost of the course.
Increase Your Deductibles: Depending on the policy, deductibles usually range from $250 to $1,000. The lower the deductible, the higher the premium. And conversely, the higher your deductible, the lower your premium. So in the event of an accident, theft or any damage to your vehicle, if you can tolerate having to take money out of your pocket with a higher deductible, then you can save on your rate.
When Purchasing A Vehicle: If you are in the market for a new vehicle, just remember that larger and more luxurious cars are more expensive to insure. But you also need to know that today, some insurers will offer discounts on a hybrid or alternative fuel vehicle.
Improve Your Credit Rating: While your driving record is a big factor in determining rates, your credit rating is also a big factor. Insurance companies believe that if a customer is responsible in their personal life (particularly financially), then they are likely to be responsible drivers. So you need to take any measures you can to have a good credit rating.
Review Your Comprehensive Coverage: Dropping certain types of coverage can be risky and that's where you need your J.P. Perry agent to guide you. But if your vehicle is old, it may make sense to drop collision or comprehensive coverage. The reason is that if the vehicle were in an accident, the insurance company would likely total the car. If the car's value is only $1,000 and the collision coverage costs $500 or more per year, it may make sense not to buy collision.
Discounts for Anti-Theft Devices: Installing anti-theft devices might lower your premiums. But your J.P. Perry agent would need to check with the insurance company who would determine specifically the types of devices they will approve. But you need to consider whether the costs of the devices are more than the savings on your premiums.
Unnecessary Coverage: Many auto policies are loaded with bells and whistles that you feel you may not need, such as roadside assistance or car rental coverage. You and your agent need to thoroughly review the policy to see if there are unnecessary items you don't need to pay for.
While all of these tips are helpful, the best way to reduce your insurance costs is to have your J.P. Perry agent shop the insurance companies for you. By representing over 20 major national insurance companies and knowing what to look for deep in those policies, J.P. Perry can save you money while obtaining the coverage you really need.