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California Tips for Saving on Car Insurance

If you're looking to save money on car insurance in CA, check out these California Tips for Saving on Car Insurance. Most of them are simple, straightforward, easy ways for you to get the best deal you possibly can when you insure your automobile. While some of them take a little time and energy, it will be worth it when you can know for a fact that you're paying the lowest amount possible for your auto insurance.

Before You Buy

There are several things you can do before you buy auto insurance that will help you get the best possible deal. These California tips for Saving on Car Insurance will also help you feel confident in the insurance you do choose to buy.

The first step towards saving money on car insurance in CA is to determine exactly what you need. If you only carry the minimum amounts of liability insurance, you'll pay a lot less than if you carry liability, collision, and comprehensive on your car. For instance, if the worth of your vehicle is less than $1,000, most insurance experts will suggest that you not carry comprehensive coverage because it's not worth it. Everyone's car insurance coverage needs are going to be different, so you'll want to look closely at the vehicles you're insuring and the people who will be driving them to determine exactly what you need.

Another option for saving money on vehicle insurance is accepting a higher deductible. While you don't want to take this so high that it would cause major financial problems if you ever need to pay it, a relatively small bump in your deductible can save you up to 10% on your insurance premiums. Again, each individual and family will have different needs in this area, so it's important to look at your situation and determine what's best for you.

In California, if you cut out any extras that your insurance company offers, like roadside assistance, you will also save some money. Some insurance companies include these free or charge, or in such a way that you can't decline them. However, it's worth checking because these extras can add up to an extra 10% of your yearly premium.

The most important thing to do when you're trying to save money on your auto insurance is to spend some time comparing rates. Most people, when they approach different companies and get a separate quote from each one, find that they are able to save up to $500. This savings does not involve accepting a higher deductible or dropping some coverage. Since different companies evaluate risk differently, some of them are able to offer lower prices than others on exactly the same insurance. Make sure that each company has included all of the discounts you would be eligible for in their quote, as these can make quite a difference in your final premium price.

Finally, before you sign up for auto insurance, check your credit rating. While it doesn't seem intuitive, all insurers take your credit score into account when determining your premium. Statisticians have found a correlation between having a low credit rating and having a higher potential for getting into an accident. Most say that this correlation exists because people who are irresponsible with their money are more likely to be irresponsible on the road. While critics say that this is not a fair practice, insurance companies continue to do it. So, if there are any easy repairs or corrections you can make to your credit history, make them before you look for auto insurance.

Once You've Bought

All is not lost if you have already purchased vehicle insurance, even if you were not able to follow all the California tips for saving on car insurance listed above. There are still ways for you to get a better deal on your insurance.

Look into combining your auto insurance policy with a renter's or homeowner's policy offered by the same company. Many insurance companies will offer large discounts if you purchase both from them. In some cases, you may pay less for auto insurance and one of the others than you would for auto insurance alone! In addition, some plans now tie your auto insurance to your health insurance. Since healthy people are less likely to need extended care in case of an accident, your rates will stay down as long as you stay healthy.

Check also to see if your insurance company will offer you a lower rate if you put multiple drivers and vehicles on one policy. While you can generally only combine drivers in the same immediate family and their vehicles, this can cut rates drastically. This is particularly true when you are adding a teenage driver. Since their insurance rates run higher than others due to their exuberance and inexperience, offers of lower rates if they are not on their own plan can be quite useful.

Make sure that you pay your California car insurance bill in full whenever you can. Most insurers will charge you more if you pay in monthly installments than if you pay once a year or once every six months, depending on the billing cycle of the individual company. Since that money is extra on top of the base price of your insurance, there is no need to pay it.

You should also check to see what discounts your auto insurance company offers and whether you qualify for them. You can get discounts for having a clean driving record, avoiding accidents, taking a driving class, having safety features installed on your car, driving fewer than a certain number of miles each year, and other things, depending on the company. Senior citizens can often get discounted rates if they take a defensive driving course and students might see lowered rates if they carry a certain grade point average. Each of these discounts can take 5-10% off the yearly price of your premium.

If you believe you qualify for a certain discount, be sure to let the insurance company know. While companies do their best to make sure you get all the discounts you can, they will sometimes miss these. Thus, it's important that you keep track of your discounts and note when you qualify for a new one, particularly when you're trying to get the best price on auto insurance rates.

Finally, the last of these California tips for saving on car insurance: many car insurance companies offer you a discount if you renew your policy with them, particularly if you commit to six months or a year of continued insurance. If your company does not offer you this or you do not see it on your statement, contact the company. It's possible they overlooked your continued business.

Remember that you can always change car insurance companies. If your company does not offer discounts that you know other companies have, or if they refuse to work with you when you pursue lowering your rates, you can always start over again and change companies. By following the California tips for saving on car insurance listed above, you'll be able to feel confident that you have the best insurance for the best price.



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