Many people have suggestions that help people save money on auto insurance, but these are often the same ideas repeated time and again. They include shopping for the lowest rate available, remaining accident free and similar common-sense ideas. Here are five unusual methods of saving on auto insurance.
Medical Coverage? Maybe.
Whether an individual needs the medical coverage included in auto insurance policies or not depends on the individual’s health insurance plan. People who must pay most of their medical expenses might want to pay for the medical coverage of an auto policy, which covers medical expenses that result from a collision. Those who only pay a small percentage of their medical bills (the rest being covered by an insurance policy), however, might want to decline this part of the auto insurance policy and reduce their premiums.
Automatic Renewal? No.
Automatic renewal programs sound good, but they have cost many customers more than a few pounds. When an individual is enrolled in automatic renewal, his premiums can be increased when one policy ends and another begins. He is still notified by the insurer, but most people overlook these notifications. Those who choose to manually review their policy before renewing can avoid having premiums increase without their knowledge.
Pay Bills On Time
Every bill can potentially have a negative impact on insurance premiums. When issuing quotes, companies consult drivers’ credit histories. Late payments will negatively affect one’s credit score and increase one’s insurance premiums. The best treatment for a bad credit report is time, as in years, but paying bills on time can have an effect in just a few months.
Voluntary Driver Exclusion
In most cases, people cannot use this tip, either because local regulations do not allow voluntary driver exclusions or because everyone in the family drives. For some, though, excluding a family member who can legally drive from coverage can provide large savings. When a driver is voluntarily excluded will not be insured under any circumstances, until the policy is changed. In return, the family is relieved from paying for that driver’s insurance.
Use Public Transportation
Using public transportation is one of the best ways to reduce the number of kilometres one drive each year. Some insurers offer low-mileage discounts to drivers who use their cars less than the national average. People can ask what the cut-off is for this discount and then calculate whether using public transportation would help them meet this requirement. People who live in suburban or rural areas, where public transit is not as viable as in metropolitan areas, can consider car pooling.
These are the lesser-known ways of reducing one’s car insurance payments, yet they can be very effective. When used in conjunction with other, common techniques, these can help people save vast amounts of money.
This was written by Ed Brohan of CheapCarInsurance.net, which helps people save money on car insurance.