Quick Tips to Save on Car Insurance

For many people, auto insurance is one of the most expensive items to squeeze into a household budget. As more people try to tighten their belts and reduce costs, it may seem as if the cost of auto insurance is one they simply have to deal with. In fact, there are several tips that can help you save money on car insurance.

Remove Towing Coverage

Although cars do break down, the cost of towing coverage is often higher than a towing bill, and most drivers rarely if ever need to have their car towed. By performing regular maintenance on your car, the chance of a breakdown along the road will be reduced. Towing coverage costs, on average, $10 to $30 per year while the average tow cost is about $100. In most cases, you must pay the towing bill up front and get reimbursement from your insurance company, which means you will have out-of-pocket costs anyway. Additional towing insurance is not the same as coverage for towing after an accident as those costs are covered under the collision portion of your policy.

Do Homework Before Buying a Car

Before you purchase a new car, do some homework. Most people assume that larger SUVs are more expensive to insure while a smaller compact car will be cheaper. The fact is that vehicles are rated individually. A small compact car may actually be more expensive as you are more likely to suffer an injury in a smaller car, and some SUVs are rated more expensive due to the damage they are likely to cause in an accident. Most insurance companies provide lists of vehicles with lower insurance rates on their website to help car buyers choose wisely.

Monthly Payments

If possible, pay your auto insurance every six months when it is due rather than through monthly payments. Many insurance companies charge fees for monthly payment plans, and although the fees may seem small, they can add up. Instead, place the monthly payment amount in a savings account and withdraw it when the bill is due. Instead of paying a $3 to $5 monthly fee, you could earn that much in interest until it is time to pay the bill. If you must pay monthly, set up an automatic payment plan as some companies waive the fee if you agree to have the payment withdrawn automatically each month.

In addition to these tips, having all your insurance in one location can help you save money as many companies offer multiple-plan discounts. Youi comprehensive insurance can help you putting all your contracts together. Remember that most insurance companies now check credit scores, and if your score is low, you may pay higher premiums. Visit here to learn more money-saving insurance tips.