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7 Ways To Lower Your Auto Insurance Bill

The cost of auto insurance can vary widely based on a large number of factors. It is easy, however, to get in a rut and simply pay the bill month after month without considering other options.

7 Ways To Lower Your Auto Insurance Bill

1. Ask For A Discount

Many times you don't even have to move your coverage to another company to save money. If you simply contact your current insurance carrier and let them know that you are about to start shopping them out, there is a good chance they will offer you a discount. For this call to be effective, you should have at least a couple of other superior quotes to what you are currently paying. This is a great article below that points out that many auto insurers have a 'loyalty' program - one that costs you for being loyal and not frequently shopping for a better deal!

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2. Drop Collision And Comprehensive On Older Vehicles

Many people don't understand that although it is a requirement to carry liability insurance, collision and comprehensive are optional. This is the component of your policy that covers damage to your own car. If the value of your vehicle is in the $3,000 to $5,000 range, you might want to consider dropping collision and comprehensive. The thought here is that once the value of a vehicle has dropped to this level, the cost of this component of your policy is cost prohibitive. Even a somewhat minor accident would likely lead to the car being considered 'totaled.' This means that the amount you can collect from your insurance carrier is limited to the point, that it is usually a better value to not to carry collision and comprehensive on an older car. (Note: If you are still making payments on your vehicle, your lender will not allow you to drop the collision and comprehensive coverage).

3. Get Rid Of The Bells And Whistles

When shopping for coverage, avoid costly extras that will add unnecessary cost to your policy. Towing and rental car benefits are nice, but deluxe features like this are usually not a good value. 

4. Consider Letting Big Brother Monitor Your Driving

Some auto insurers will offer you a nice discount if you agree to have an onboard tracking device in your vehicle. The device will track things like the number of miles you drive, how quickly you accelerate and decelerate and other factors to determine your 'road risk.' While it does seem a bit intrusive, the device is simply collecting statistics known to be reliable measurements for driving safety.

5. Use The Internet

The Internet has made shopping for a lot of things much easier, and auto insurance is no exception. One option is to get on the phone and start dialing for dollars, but a more efficient way to shop is online.

Here are four sites to use to do your online shopping. 

1. Nerd Wallet

2. Esurance

3. Netquote

4. The Zebra

6. Carry Higher Deductibles

Agreeing to be responsible for the first $1,000 of damages to your vehicle can pay big dividends. Moving from a lower deductible to $1,000 can result in a savings of 30% or more.

7. Don't Skimp On Liability Coverage

It might be tempting to lower your liability coverage, but most prudent advisers would suggest no less than 300/500 policy limits. This means that the amount your policy will pay is $300,000 maximum to a single person and $500,000 maximum overall in one accident. Here is a really good article on auto insurance liability limits. Along these same lines, you should always carry uninsured motorist coverage (especially these days with the large number of uninsured drivers on the road).

What is your best strategy to save money on auto insurance? Use the comments section below and we can start a conversation.

Helping you make the most of God’s money!  

James L. Paris 
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice 
Jim Paris 24 Hour Radio

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