You paid more for your new car than you paid for your first house. We all know how the story goes. And all it took was a few weeks to lose the entire investment, when you goodheartedly loaned your new car to your ‘trust-worthy’ significant other.
You have no one to blame but yourself. You knew you were turning your brand-new, success-trophy over to someone who was not the best driver on the planet. On the other hand, you’ve always been as generous as you are successful, so how could you have said no; and it really was an emergency.
So you take your lumps – about $2,000 out-of-pocket for a deductible that now almost makes the insurance seem affordable – and you vow never to repeat the mistake. All it takes is a little education, preferably for others.
Education is the key. Did you know, for example, that taking a defensive driving course offered by various entities under the umbrella of your state’s Department of Public Safety, or DPS, can save you as much as 10 percent on your auto insurance?
The course is even more effective in ensuring you don’t pay skyrocketing insurance rates if your newly-licensed son or daughter takes it as well. In fact, any licensed driver in your family can cut insurance rates on your vehicle(s) simply by completing the course. And, as a bonus, some states will actually allow you to take the course online. Once all drivers are qualified, your insurance company – and others – may offer you a multi-vehicle discount. This way, you can buy that second or third car and keep your success-trophy Beemer to yourself.
When you have completed the course, it might also be time for you to shop around for insurers. The fact that you have had the same agent for three decades may be important to you, but it is no reason for paying higher rates. On the other hand, if your agent is always responsive to your telephone calls, even late at night, you might want to consider his or her accessibility a fee, and thus part of the greater cost. Only you can decide.
What should you look for in an insurer? You can compare auto insurance rates online, at dmv.org, or you can contact the office of your State Insurance Commissioner. Comparing rates and checking for those little loopholes could save you a bundle, either directly or indirectly. For example, some insurance companies offer good driver, or accident-free, discounts.
The color of your new vehicle, its new vanity plate, and the style – sports coupe or sedan – will also be factors in saving, or spending, money on insurance. So far, auto insurance companies haven’t started asking new ‘insureds’ if they talk on their cell phones while driving, but the day isn’t far off. Some states already prohibit it. Look at it this way, if you cruise past a police car doing 40 in a 30, in a bright red Mazda MX-5 Miata, with a vanity plate that says, “U LUZ,” talking on your cell phone while making meeting notes on your PDA, and drinking the first Starbucks of the day, as you simultaneously trying to beat a red light, odds are you are going to be stopped for your distracted driving. If you are not wearing your seat belt, it’s double trouble.
If stopped, you may get a ticket, or you may get a warning. Depending on what the ticket says – and it will get back to your insurance company – your rates will either rise slightly or go up enough to cause a little cardiac disturbance, because these five behaviors are what law enforcement officers regard as an accident looking for a place to happen.
Other behaviors that can save you money include filling up the gas tank as opposed to buying $5 or $10 every time you are ready to run out. Keeping your tires inflated to the correct pressure (as shown in the manual) will help improve miles-per-gallon. Driving at a steady speed, as opposed to constant braking, will also improve the mpg ratio. As will regular servicing, which can seem prohibitively expensive at times but will prevent your car from ultimate meltdown.
One example of a maintenance procedure that some people in cold climates don’t think about is car-washing. It gets rid of the salt that causes the undercarriage to rust. Your car may look like it is in mint condition, until it hits a bump at the end of the driveway and drops the entire drive train on the street.
If you are very comfortable financially, and your car is paid for, you can opt to carry only basic liability auto insurance instead of full collision and comprehensive insurance. That way, your premiums remain small. However, older drivers and those with good driving records will not pay much in comprehensive and collision premiums to make much of a difference, anyway. It never hurts to be on the safe side and over-insured, if you don’t have to pay much more. It can lessen the financial blow from what can become catastrophic losses.
How do you keep your insurance rates low?
Article Written by SimplyLili
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Twitter: @SimplyLili1717
Bio: SimplyLili is a PhD student in Social Psychology, and the witty author of Essell Magazine; created to disperse knowledge on a plethora of psychological topics in a minimalist and relevant way. She is a self-proclaimed nerd, and her 3 fave things are blogging, rainy days, and pugs.
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