When it comes to insurance, there are a lot of things you could do to save money. Your car is an investment and so it’s important that you protect it with the best policy possible. In this post we’re going to talk about 11 tips for saving money on your pony car insurance!
1. Increase your deductible
You’ll typically be able to choose between a $200 and a $500 deductible. If you’re paying insurance premiums for an amount that is higher than the part of the car that your deductible covers then you will want to increase it. The lower your premium, the less money you’ll pay in total, even though the chances of something happening that would require you to use your car insurance are the same regardless of how much coverage you have.
2. Do not buy Rental Car Insurance
If you already have personal auto insurance on your vehicle, then it will typically cover any rented vehicles too (with some caveats). While rental companies like to push this type of extra coverage, it isn’t worth it. Typically a personal policy will cover a rental car for free, and if you already have comprehensive and collision coverage on your own policy, then you don’t need it from the rental company either.
3. Don’t pay more than what you have to
As we discussed in this post , the average spend at coffee shops is just shy of $5 a day. If you’re spending that much every single day on a latte, then it’s time to find a cheaper habit or switch to making your own coffee at home. To keep with the same theme, if your premium is higher than what you have to, then its worth shopping around for another insurer with lower premiums. If you’ve been with your insurer for more than five years then there is a good chance that they will be able to offer you a lower premium, as long as the coverage they provide is at least as good as what you currently have.
4. Secure higher deductibles
If your car isn’t very expensive and you’re only using collision and comprehensive coverage, then you can probably secure a higher deductible. Typically this will mean that you have to pay for the full extent of any damage out-of-pocket before your insurer starts paying up. However, if your deductible is high enough to cover the total value of your car or more, then it makes sense in order to lower your premiums.
5. Take advantage of discounts
There are a number of different ways you can save money on your car insurance premiums. The best way is to find all the discounts available to you and bundle them together, if possible. If you have multiple policies with one insurer they may offer bundling discounts. This means that if you insure more than one car or home with your insurer, then they may be able to reduce your premium as a result.
Another way you can save is by bundling different policies with the same insurer. For example, if you insure more than one vehicle under your name and score those discounts, then those savings could be passed onto you by bundling non-auto related policies with your car insurance.
6. Ask for a discount… even if you don’t need one
You never know what kinds of discounts others are getting until you ask, and the worst thing that can happen is that they say no and you’re no worse off than before. So just take a few minutes to call your insurer and inquire about what kinds of discounts you might be able to score.
7. Get a higher deductible for your comprehensive coverage
If the property value is high enough and you have sufficient savings, then consider raising the deductible on your comprehensive policy (in Rhode Island state minimum is $500). This typically means that you will pay for damages out-of-pocket, but since the deductible is so low it’s not likely you will have to. Therefore, your savings should be more than worth it for this added peace of mind.
8. Know what your vehicle is worth
When shopping around for new insurance, you need to know how much your vehicle is worth. If you’re trading in your car or selling it, then check Kelly Blue Book to find out its approximate value. The last thing you want is to have a hefty premium for a vehicle that you’re no longer using.
9. Get liability-only insurance
If your car isn’t very valuable and your utilize public transportation, then consider only insuring yourself against lawsuits with liability-only insurance. Although this will save you serious money, it’s not ideal since it doesn’t protect your car or personal property in most cases.
10. Take advantage of lower-risk driving courses
If you’ve had a couple of accidents with your insurer, then chances are they’ll start charging you more for your premium. However, many insurance companies will reduce premiums for drivers who have taken a defensive driving course. This is worth looking into, since the cost of most similar courses are quite low anyway.
11. Do away with collision and comprehensive coverage entirely
If you only drive an old beat-up car that’s not very valuable then consider dropping collision and comprehensive coverage altogether. If you ever get into an accident, then you will be on the line for paying for repairs out-of-pocket. However, by dropping these two types of coverage, you should save enough to be worth it… just don’t expect your insurer to pay for damages if you ever get into an accident that wasn’t another driver’s fault.
What is the difference between liability, comprehensive and collision?
It’s important to understand the differences between all three types of car insurance coverage before deciding which one makes sense for you. Liability coverage is mandated by law – it covers other people in case you get into an accident that wasn’t your fault. If you damage another person’s property or injure them, then this coverage pays for the damages. It also covers you in case you get sued. Comprehensive insurance is optional but very important – it protects your car from events other than accidents, such as fire or theft. Collision insurance is also optional but highly recommended – it kicks in when your vehicle gets into an accident with another object, such as a guard rail or parked car.
What is an SR-22 filing and how do I get one?
An SR-22 is a document required by some states to show proof of car insurance. In most cases, you’ll need to carry this form with you after getting out of a ticket or being found guilty of a serious driving offense such as reckless driving. Although it’s not legally required in all states, an SR-22 filing can help you lower your insurance costs by showing that you have a clean driving record.
Are there any ways to get discounts on my policy?
Yes, there are several ways you can reduce the cost of your monthly premium – or even score a discount altogether. For example, if you have an anti-theft device installed in your car or another safety feature such as a satellite tracking device, then you might get discounts for having this equipment. Also, if you take a defensive driving course, your insurer might reduce your premiums. And finally, if you can provide proof of other insurance policies such as home owner’s or renter’s insurance, then some insurers will give you lower auto insurance rates in return.
What are the most important factors that determine my monthly premium?
There are several factors that insurance companies use to calculate your monthly premiums, including your age, the type of car you drive and where you live. Other factors include your credit score, driving history and how many miles you drive each day.
As A Result
We hope you’ve found this article helpful and that it has helped to clarify some of the confusion surrounding car insurance. Remember to periodically update your coverage so that you are always fully protected when driving with a pony in tow! Comment below if there is anything else we can do for you or if there is something specific on which you would like more information. Thank you again for reading our blog post today and as always, drive safe out there!