top four ways to reduce your auto insurance premiums

Try these 4 Ways to Reduce Your Auto Insurance Premiums
 
Through my time as an independent agent I’ve learn that knowledge is power. This power has assisted my clients with meeting and exceeded their objectives.   One way to help meet one’s financial objectives is to reduce personal expenses and streamlining auto insurance premiums can assist with that goal.

Remember insurance premiums are based on three fundamental questions – Where do you live? Who are you? What do you drive? However, there are tactics that can help to create a savings cushion for your personal finances. Here are my top four ways that I help my clients reduce their auto insurance costs.  They are as follows:

1. Check Every Two – Look to shop your auto insurance policy at least every two years.  Insurance carriers are always looking for new markets to penetrate.  Therefore, a new entrant or even an existing player in your geographic area are always looking for new customers to help build their portfolio.  A great way to grow market share is to offer competitive pricing.  Reach out to an independent broker agency that has the capability of getting quotes from more than 5 carriers in your geographic location.  You can always use it as a bargaining tool with your existing carrier.  Price checking goes a long way to making sure you are getting the best deal.
2. Leverage the Package – Combine your auto insurance with your home insurance policy.  Insurance carriers want  partners and lasting relationships.  What better way to maintain a lasting relationship than by connecting to your prize asset – your home.  Linking your auto coverage with your renter’s or homeowner’s insurance can produce an average of $235 per year in savings, according to Consumer Reports.
   
3. Deductibles That Fit – Raising your deductible from $500 to $1000 has shown to save drivers on average $140 each year, according to Consumer Reports.  The main thing to consider here is to make sure you can afford a higher deductible.  I always recommend this tactic to my clients that are great savers and have solid cash reserves for emergencies.
   
4. Credit Does Matter – Your FICO score can impact your premium.  Not paying your bills on time can affect your auto insurance premiums more than having two DUIs.  Consumer Reports recently found that a two-car couple with poor credit on average would pay an extra $2,090 per year in premiums compared to a couple with excellent credit.  That is more than the extra $1,750 annually a two-car couple would pay if they had two violations for a DUI.  Get a copy of your recent credit report – I recommend www.annualcreditreport.com.
   

 
Auto insurance is a necessary price we all share in order to drive.  However, it’s not a compelling topic and most people don’t like to spend a lot of time on it. However, with a little due diligence and time, a car owner can save a lot of money.  Connect with a partner that can do the work for you.  We are talking in many cases hundreds of dollars in savings per year.  It’s worth it.

follow us @dsjadvisors