Very few people are aware of this tactic, but it can save you upwards of a few hundred dollars per year. On an Auto Policy, there’s a coverage known as: “PIP Coverage”, or Personal Injury Protection Coverage. In the event an accident occurs, this is the coverage that covers medical bills. In order to save money on your Auto Insurance Premium, you can request that your Health Insurance provider be named the primary payout in the event of an accident that requires medical attention. For example: An accident occurs that produces $45,000 in medical damages, your health insurance will cover up to $25,000 in damages. The other $20,000 in damage would then be covered by the PIP Coverage of the auto policy.
This is a strategy often used by young drivers under the age of 25, as well as drivers with little experience, little prior insurance history, bad credit, or all of the above, and only applies to individuals who's vehicles are registered in the name of the Applicant of the Insurance policy. Instead of a driver getting their own policy, they simply request to be added on to a friend or relative’s policy in order to benefit and be rated with their credit, insurance history, and other eligible discounts. Note: By being added to someone else’s policy, you are also effecting their pricing, so it’s best to consult your agent or broker on what they recommend for the given situation. (Example: A father puts a son's soon-to-be vehicle registration under his name, thus allowing him to be eligible to insure the car at a more affordable rate.)
3. Add Another Policy:
Packaging multiple policies together is a great method of reducing your premiums. Having all of your insurance policies under the same roof makes keeping track of them much easier, but also makes you eligible for a “Multi-Policy Discount”. For example: You can package your Auto Policy along with a Home Owner’s Policy, Personal Umbrella Policy, or even a Motorcycle or Boat policy. Helpful Tip: I often run into clients who have high Auto Insurance premium and rent an apartment. Although they do not own a Home or other entity that can be insured, they can still purchase a Renter’s Policy to become eligible for this discount. A standard Renter’s Policy typically costs no more than a few hundred dollars per year. Does it make sense to purchase an additional policy that will protect you and your belongings for $200 if it means you will save $300 on your auto insurance by doing so? Of course! More coverage, more savings.
4. Take A Defensive Driver Course:
This is a more commonly known solution to reduce your premium. Taking this course will allow you to Opt-In for the Defensive Driver discount. This discount is not very substantial, but when it comes to saving money on your insurance, every little bit helps!
5. Don't Let Your Policy Lapse:
One of the most crucial components when providing you with an insurance rate is your proof of prior insurance. Insurance companies are looking for continuous insurance without any lapses or cancellations for an extended period of time. If there’s one thing you want to make sure of it’s this: Do NOT let your policy cancel. If you do, your future rates will increase drastically.
6. Repair Your Credit:
Credit is another huge factor in determining your insurance rate. Bad credit, results in high premiums. Talk to your representative to see what tips they have for repairing your credit and getting you back on track to the savings you deserve.
7. Don't Over-Insure Yourself:
Now don’t go crazy with this one. We are not suggesting that you get state minimum required coverage to cut costs. You need to find the amount of coverage that suits you and your personal needs. Some coverages may not even be necessary for you to purchase. For example: If you own a vehicle that is worth $1000, and get Collision Coverage with a $500 deductible, and pay an extra $700 per year in auto insurance premium to have that coverage on your policy, it’s simply not worth having.
8. Opt for an "EFT" or "Paperless" Billing Plan:
Insurance companies have become much more technologically savvy as well as environmentally friendly over the years. More often than not, you can receive a discount for using a billing plan known as: “EFT” or “Electronic Funds Transfer”. This simply means that: Instead of getting a bill in the mail every month, the insurance company will draft the payment directly out of your account on the day of your choosing.
9. Get Your Quotes In Advance:
By getting your quotes 7-10 days before the Effective Date of the policy, you are eligible to receive an Early Shopper’s Discount. Note: This may not apply for every insurance company.
10. Use A Broker:
The benefits of using a broker to service your insurance accounts are tremendous. A broker has access to dozens of insurance companies and can do all the shopping around for you! Not only will this save you time, but also save you much frustration, and most importantly: money! Note: Make sure when you are looking for a broker to service your insurance needs that they do not charge a “broker fee”.