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The rising cost of fuel, tires, servicing and insurance make it more expensive than ever to own a car. But did you know the price you pay for your auto insurance can vary by hundreds of dollars, depending on a number of variables? Keep in mind these eight tips when looking to save money on your current or next auto insurance policy:
You may qualify for a discount if you haven’t had any accidents or moving violations for a number of years. Ask your insurance agent if discounts are available for the following:
You can often get a discount if you buy two or more types of insurance from the same provider, such as auto and homeowners or auto and renters. You may also get a discount if you have more than one vehicle insured with the same company.
Rates can vary greatly and they change often. Review your coverage at least once a year and get multiple quotes from different insurance companies.
As a general rule, the more miles you drive, the more chance for accidents and therefore the higher your premium. If you don’t accumulate much mileage, you might pay less.
Deductibles are what you pay out of your own pocket before your insurance policy kicks in. By requesting higher deductibles you may lower your costs substantially. For example, increasing your deductible from $250 to $500 could reduce your collision and comprehensive coverage cost. But before choosing a higher deductible be sure you have enough money set aside to pay for needed repairs.
Consider dropping collision or comprehensive coverage on older cars. A good measure to use when making this decision: if your car is worth less than ten times the annual premium, purchasing the coverage may not be cost effective.
You may have always dreamed of driving a sports car—but your insurance premiums could be a hindrance. Variables include the likelihood of theft, cost of car, repairs, overall safety, and potential damage the car can inflict on another car. On the other hand, some companies offer a discount if you drive a hybrid or low-profile car. Before you buy a new or used car, check into the insurance costs.
Most insurers use credit information as a factor in pricing auto insurance policies. By establishing a solid credit-based insurance score, you can cut your insurance costs. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
There are many ways to save money on your auto insurance, just make sure that a low price doesn’t sacrifice coverage. Talk with your friends, family, and coworkers about the discounts they receive and be sure to ask your insurance agent about the discounts specifically available to you.
Still not sure you’ve got the right coverage? Our knowledgeable team of licensed insurance agents can help you. Visit Wells Fargo auto insurance to learn more.
We’re committed to your financial success. Here you’ll find a wide range of helpful information, interactive tools, practical strategies, and more — all designed to help you increase your financial literacy and reach your financial goals.
Please review your insurance policies carefully, as coverage and exclusions vary.
Wells Fargo Insurance, Inc. (Minneapolis, MN) is a licensed agency that represents — and is compensated by — the insurer based on the amount of insurance sold. No purchase of an insurance product through Wells Fargo is required.