Short of slipping through some legal loopholes, most of us aren’t aware that we can get away with paying a lot less for our insurance, just by setting it up a little bit differently. You don’t have to do anything illegal, or even slightly un-ethical. It’s just a case of knowing the rules well, and knowing where you can exploit them.
Bear in mind that some of these tricks will work better in certain states, so always check up the laws in your own state first.
1 – The Multicar Discount
Putting two cars on one policy usually works out cheaper – you can save as much as 50% on the second car, especially if it is a reasonably-priced modern car. It’s easy to be swayed by great offers on insurance when you buy a second car, but check out with your other company what kind of deal they can give you before you sign insurance papers on the dealership floor. This leads to number 2:
2 – Get it on Your Parents’ Insurance
If you’re under 25, it can usually work out a lot cheaper to add your own car onto your parents insurance, with you as the registered driver, and just pay them every month for the insurance. The plus side of this is that you can get a huge discount on your insurance. The downside is that you unfortunately won’t build up any kind of insurance record of your own, which can make it more expensive down the road.
3 – Buy a Security Device
In some states, insurance companies will offer you a discount if you have a security device like a steering lock installed. Always check that the savings on your insurance policy will pay for the device in a decent amount of time, otherwise it isn’t really worth the extra expense.
4 – Use a Diverse Insurance Company
If you’re planning on needing more than one type of insurance, such as home owner’s insurance and electronic device insurance, it can often pay to go with an insurance company that has well-developed products in all of those lines. It might make sense to go with different companies if they have good deals, but it’s very rare that three different companies will offer you three deals that are better than what one large insurer can do.
5 – Improve Your Credit Score
This last one is much easier said than done, but it can make a huge difference. As far as insurance companies are concerned, a person who is bad with a credit card is likely to be a reckless driver. If you diligently apply yourself to paying off your credit cards and keeping up payments on all of your bills, you will be able to apply for a lower rate in a year or two’s time.