Tips for Saving Money on Auto Insurance

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While you’re in the process of building your income streams, reducing your expenses is a sound strategy to stay liquid. Auto insurance is a necessity, but you don’t have to pay out of the nose for it. Your goal is to hedge against extreme losses, which can include expensive repair bills, vehicle rental, towing, medical bills and possibly property damage. Shopping smart and understanding what you need should help you find the best coverage for your vehicle. Follow these useful tips to choose a policy that’s ideal for your vehicle and your financial situation.

How Old Is Your Vehicle?

Insurance was created to address risk. You protect yourself against significant financial losses by paying premiums on a policy to reimburse you, should an unforeseen negative event occur. Deciding how much coverage you need on your vehicle is a balancing act, as you must consider a lot of factors: its value and age, any outstanding debt and services you likely need while it’s being repaired or replaced. As you evaluate how much coverage you’ll require, it’s vital to make sure you don’t fall into the trap of paying for too much insurance.

Purchasing comprehensive and collision coverage in addition to liability may not be a sound decision for an older vehicle, as you’ll pay far more money than the vehicle is worth. The Insurance Information Institute advises dropping these options if your car is worth less than $1,000 or less than 10 times your premium. It may be better to allocate those funds towards another vehicle, especially if repair costs are greater than your current vehicles value or more than one year worth of loan payments.

Double Up on Discounts

When shopping for auto insurance, it’s important to think about more than just your vehicle. NerdWallet suggests purchasing multiple policies with the same insurer, as this can often gain you a bundled deal with discounts for homeowner’s or renter policies along with your vehicle coverage. Additionally, ask your agent if you qualify for other savings. Insuring multiple vehicles, owning automobiles with specific safety features or even earning good grades as a student might qualify you to spend a little less extra green

A Caveat: Using Personal Vehicles for Business

It’s unsurprising if you’re using your personal vehicle for business as an investment professional. Nevertheless, the Insurance Information Institute  that your personal auto insurance may not cover you in these cases. Speak with your agent first, but you’ll likely need to purchase commercial auto to ensure that you’re covered if you get into a collision or another incident happens while you on business. To keep costs in check, maintain a safe driving record and make sure your employees do the same.

The Big Picture Vs. Small Details

As a stock trader, one of the key practices leading to your success is learning how and when to focus on small details as well as the bigger financial picture. With your insurance and risk management strategies in your personal finances, your approach should be no different. Paying attention to your credit and seeking discounts are great strategies to keep your personal auto insurance expenses manageable. Furthermore, maintaining a safe driving record is vital, whether for personal or commercial auto coverage.