Today, I was reading some blogs and I came across one that was written by SonyaAnn. She was talking about saving money on auto insurance, and I came away from her post Totally Inspired! It got me thinking about ways that I could save money on my family's auto insurance.
So, I started looking online for ways, and I found, "How to Save Money on Car Insurance" tips at eHow.com. Read them and let me know what you think. I am confused about #4 and #5:
1. First, shop around. If you have moved to a new area recently check different companies. Insurance companies have different rates for different areas.
2. Try to get your homeowners insurance and auto insurance from the same company if they offer a discount.
3. Ask for all the discounts like: no smoking, part time driver, good student discount, etc. Be sure to see what each company offers discounts for. Take notes when shopping.
4. Here is a big issue for some parents of teenagers (like me). If you do not have one car for each driver, put the teen on part time. If you have a car for each driver, put the teen as primary driver on the lowest rate car. I did not say cheapest car, I said lowest rate car. Just because a car is older and worth less it may have a higher rate than a newer car. *I am confused on this one. We were not able to do this with our current auto insurance. I'm not sure about this one.
5. If the teen rate is still outrageously high priced, then consider buying a old junker that has a low rate even if to sit in the driveway and insure and put the teen on as the primary driver of that vehicle. He or she is still covered on the other vehicles but the low rate is based on the car you bought for a few hundred dollars in your driveway. (Again, I am confused on this one.)
6. If you have the cash pay annually for a discount rather than monthly or quarterly.
7. Remember to get quotes every six months or so because everything is always changing.
8. This may seem ridiculous but consider the zip code when you are moving. Remember the rates in some zip codes are much higher than others even on your car insurance.
Now that you have read the above tips, what do you think of them? Give me your feedback and also your handy-dandy car insurance savings knowledge!!