Wealth Building Lessons

It always pays off to shop around for a car insurance policy. Insurance companies sell their policies through three different channels: their own insurance agents, independent agents and directly via the web or phone. Make sure you get quotes from each type of company.

Apart from the above there are several things you can do to keep your car insurance rates low:

• Drive safely: if you haven’t had an accident or moving violation for a year or two or if you’re recently taken a defensive driving class, you should ask for a discount.
• Multiple car discounts: if you insure more than one car with the same company.
• Combining auto and homeowners insurance: Most companies will provide a discount for insuring both of these together.
• Anti-theft device discount
• Safety device discount: if you have anti-locking brakes, your insurer might offer you a discount.
• Low mileage discount: if you drive less than the average 15,000 miles a year or if your work is very close by, you should ask for a discount.
• Professional membership discount: if you are a member of a professional organization or are an engineer or an account you might qualify. So employers and alumni associations may also have tie-ups with certain insurers too.
• Good Student Discount: if you’re a student and maintain a B average most companies will offer this discount.
• Mature Driver Discount: if you’re over a certain age (like 50) you may qualify for this one.
• Owning a safe car: if you own a ’safe’ car your rates will be lower. It’s obviously cheaper to insure a Corolla than a Camero. Ask the insurance company before you buy your next car about this or check it out online at the Insurance Institute for Highway Safety on its Web site at www.hwysafety.org.
• Increase your deductibles: if you increase your deductibles from $250 to $500 you might save about $200-500 per year. You should definitely find out if this makes sense.

Following these simple strategies can definitely help reduce your premiums and assist in your quest to creating wealth. Make sure you ask if there are any discounts you missed. You won’t know if you don’t ask.

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