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buying How I Slashed Auto Insurance Costs by Nearly $400

19:01  06 june  2018
19:01  06 june  2018 Source:   gobankingrates.com

What Is Gap Insurance (And Why You May Need It)?

  What Is Gap Insurance (And Why You May Need It)? It helps protect motorists who are "upside down" on a lease or car loan.If you’re buying or leasing a new car or truck these days, you’ll likely be offered – perhaps required to purchase – so-called gap insurance. This type of policy covers the difference between what a given vehicle is worth and what the owner or lessee still owes on it, should it be stolen or become totaled in an accident. For the record, “gap” stands not for the above imparity, but for Guaranteed Auto Protection.

Spending less, tightening your belt, cutting costs : Call it what you like, but trimming the fat from your budget can feel like going on a diet. It’s restrictive. However, it doesn’t have to be. One of the best ways I ’ve found to save money is to avoid paying more than necessary for services you need.

Retirement Watch » Insurance » Personal & Property Insurance » How to Slash Auto Insurance Costs . Can you cut your car insurance costs by investing only 30 seconds of your time? That means if you're currently spending ,000 a year on insurance , you're going to get to keep $ 400 every

Spending less, tightening your belt, cutting costs: Call it what you like, but trimming the fat from your budget can feel like going on a diet. It’s restrictive. However, it doesn’t have to be.

One of the best ways I’ve found to save money is to avoid paying more than necessary for services you need. For example, I recently discovered that I was paying too much for auto insurance. By spending a little time getting a better deal, I slashed the premiums for my car (and my husband’s) by $389.

Good driver, bad credit: What makes your car costs so high

  Good driver, bad credit: What makes your car costs so high Car owners with poor credit can pay hundreds — if not thousands — more to drive than those with good credit. This plays out in two important ways: higher rates…To see how much poor credit can cost car owners, NerdWallet looked at auto loan terms and insurance quotes for drivers in different credit tiers.

Spending less, tightening your belt, cutting costs : Call it what you like, but trimming the fat from your budget can feel like going on a diet.

Wondering how much home insurance costs ? We have average home insurance rates by state and Average home insurance cost by state. While many factors go into calculating your rate Insurance .com’s analysis of rates from top insurers for nearly every ZIP code in the country bears

Click to read more about 20 common places people lose money.

The best part about it is that I was able to add money back into my budget without having to actually tighten my belt or eliminate things I enjoy. Find out how I cut the cost of auto insurance by nearly $400.

I Shopped Around for a New Insurer

Mother driving with her kids.© Marc Romanelli/Getty Images Mother driving with her kids.

I thought I had already done a good job of getting cheap car insurance because my previous policy had been with an insurer that offers competitive rates (State Farm). I checked in frequently with my insurer to make sure my husband and I were getting all of the discounts we deserved. Our annual premiums of about $730 each were well below the national average of $907, according to ValuePenguin.

States Where Poor Credit Has the Biggest Impact on Car Insurance Rates

  States Where Poor Credit Has the Biggest Impact on Car Insurance Rates A study finds low credit scores can cost you thousands a year in car insurance, especially in Michigan.A nationwide report by NerdWallet finds that auto insurers widely use consumers' credit histories to determine rates, and those with low credit scores pay an average of $1,270 extra per year in car insurance. Insurers see those with low credit scores as more likely to file claims, the report states.

D- Insurance targets the main reason car insurance is so high in the city: health care costs . Right now, studies indicate that Michigan physicians who treat drivers with car accident-related injuries charge auto insurance companies up to 400 % more than similar physicians rendering the same treatment in

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But earlier this year, I decided to reshop for homeowners insurance because my insurer didn’t carry a particular type of coverage I wanted. I worked with an independent insurance agent to get me quotes for both home and auto insurance from several carriers. As it turned out, the auto insurance I had wasn’t the best deal.

A study by J.D. Power found that auto insurance customers who reshop policies and switch insurers save an average of $356 on their annual premiums. By reshopping my auto insurance, I found that I could get cheaper coverage from an insurer with a much higher customer-satisfaction rating (Auto-Owners Insurance) than my previous insurer had.

Related: How This Man’s Daughter Saved Them Thousands on Car Insurance

I Got a Multipolicy Discount

Young couple driving convertible at sunset© Thomas Barwick/Getty Images Young couple driving convertible at sunset

Reshopping my auto insurance helped me realize I could get a better deal. But I used other strategies to get the cost down even more. For example, I got a multipolicy discount by getting auto, homeowners and umbrella liability coverage through the same insurer. I saved a total of $430 on all three policies by packaging them together.

Drivers Say These Are the 11 Best Auto Insurers

  Drivers Say These Are the 11 Best Auto Insurers Consumers have ranked these car insurance companies highest based on customer satisfaction. How does your auto insurer compare?Here’s some good news about car insurance for a change: Folks are more pleased with their insurance companies than ever.

Best Car Insurance Companies of 2018 by BestLowInsurance. Save on Car Insurance Now & Compare Rates From Top Companies. But this expensive item needs to be secured by sufficient amount of auto insurance , which also safeguards the interests of the driver and the car-owner.

How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps - Part 1 by: Tom O'Leary. That means if you're currently spending ,000 a year on insurance , you're going to get to keep $ 400 every year. If you jump to a ,000 deductible, you could keep almost 0 extra a year in your pocket.

I Increased My Deductible

Woman Giving Man Car Keys© Anne Rippy/Getty Images Woman Giving Man Car Keys

I also cut auto insurance costs for our vehicles by increasing our deductibles from $1,000 to $2,000. That lowered each of our premiums by about $100.

This is a strategy you should use only if you can afford to pay the deductible when you file a claim. However, you don’t have to increase your deductible as much as I did to see savings. Just boosting it from, say, $200 to $500 can result in a lower insurance rate.

You can set money aside in an emergency fund to have enough cash to cover your deductible. Then you won’t find yourself in a financial pinch if you get in an accident and have to file a claim.

More on Setting Money Aside: 39 Ways to Save for Your Emergency Fund

I Paid My Premium in Full Rather Than Monthly

Businessman driving car.© Stewart Cohen/Getty Images Businessman driving car.

Another way to pay less for auto insurance is to pay your premium in full rather than monthly. Insurers typically offer a discount if you pay upfront.

My husband and I saved a total of $175 on our auto insurance premiums by paying them in full. Sure, it’s nice to lessen the blow on your budget by spreading insurance payments over 12 months. But it was worth it to pay the premiums for our two cars all at once to reduce the total amount we had to pay from $1,261 to $1,086 — a savings of about 14 percent.

Click through to read more about 35 ways to slash your car costs.

This article originally appeared on GOBankingRates.com: How I Slashed Auto Insurance Costs by Nearly $400

AAA study finds car ownership far cheaper than ride-hailing .
For most, full-time ride hailing is more than twice as expensive as owning a car.AAA analyzed the cost of ride-hailing services, including the occasional use of rental cars, in 20 major urban areas and multiplied that by 10,841, which is the number of miles driven per year by the average driver in urban areas, according to the AAA Foundation for Traffic Safety. It focused on urban areas because they're the only places where ride-hailing services are available as a practical full-time option for getting around. Using that figure, relying on ride-hailing for your transportation would cost an average of $20,118 a year.

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