Four Ways To Reduce Your Auto Insurance Without Spending A Dime

Many drivers look favorably on the idea of lowering their car insurance, but many techniques for doing so have an associated cost. Installing a high-end anti-theft system, for example, can lower your bill but requires a significant investment on your part. If you're not eager to spend any money but are still enticed by the idea of lowering your bill, there are a number of strategies that you can try that don't have any expense, although the exact amount of savings you can expect to receive depends on several factors related to your specific policy. Grab the phone and give an insurance agent, like those at Klondike Insurance, a call to discuss the following four areas.

Deductible Amount

Your deductible, which is the amount you pay in the event of making a claim, influences your overall insurance premium. The higher your deductible amount, the less you'll pay for your auto insurance. Check the current amount of your deductible with your agent and ask about the rate reduction you'd get from raising the deductible at various levels. However, don't get so tempted to reduce your premium that you raise your deductible to a level that stresses you.

Loyalty Bonus

If you've had insurance from the same company for a lengthy duration, asking if you're eligible for premium reduction due to your loyalty can translate into cost savings without spending any money. Many insurance companies provide financial incentives in the form of lower premiums for their customers who have stayed with the company for a specific number of years.

Coverage Change

Removing your collision coverage can be beneficial if you have a car that has an extremely low value. If your car's value is less than your deductible, for example, it wouldn't be financially sensible to make a claim and pay the deductible if you're in an accident. In this situation, there's no point in paying for collision coverage and getting rid of it is a simple way to reduce your premium.

Payment Schedule

Although you might find it easy to pay your car insurance in monthly installments, talking to your agent about changing your payment schedule can translate into more money in your back account at the end of the year. Insurance companies often provide discounts for customers who can afford to pay the entire year of coverage in one annual payment. As with changing your deductible, this approach is only best to adopt if you have the financial means to do so.