Shopping around for car insurance is time consuming and a pain. Thankfully, there are ways to minimize costs when you’re looking for comprehensive car insurance. Below you’ll find tips to minimize your car insurance cost.
Shop around
Using an online comparison site like iSelect can save you money. Settling for the first quote is a big no-no! iSelect aims to save its customers money and time by offering an easy way to compare car insurances. You can also get a free quote! If you’re already insured, you can use the site to compare your insurer’s quote to others.
Be a good driver
If your driving record is clean, you’ll end up paying less to insure your car. Insurers will use your driving record and claims history to evaluate your risk level. The higher the risk, the higher the premium — that’s just one more reason to be a safe driver!
By Bobbi Burger Brunoehler of BobbisBargains.
ragingtornado/flickr
Many serious and expensive mechanical problems begin a long time before your car breaks. There are lots of signs indicating that something is wrong. If you learn to recognize those signs, you can save yourself a lot of money and heartache.
However, talking to your mechanic about what you sense is wrong is not always easy. You need to know how to talk about what you are experiencing.
First of all, it is important to notice when your car is running well. How does it sound? How does it handle? Turn off the radio and roll down the window. Ride in the car by yourself and listen. What do you hear?
The U.S. economy didn't make the grade. AJC1 / Flickr
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By Bobbi Burger Brunoehler of BobbisBargains.
I have a 14-year-old car that I adore. Despite the allure of a beautiful, new, high-MPG eco-friendly compact, I want to keep my comfy Dodge Grand Caravan running smoothly. It is paid-in-full, has low insurance rates, and can easily transport all our stuff.
I was strongly considering buying another, more recent used car to replace my van. However, after extensive research and test drives, I decided to keep my beloved caravan and fix anything that was wrong. I know the history of the car’s breakdowns and repairs. And I know what will soon need fixing. I already took advantage of a free recall replacement on a defective air bag indicator.
Since I figured I would have paid at least $5,000 to get a new-used van, I figured I could spend that much on fixing my current car and still be ahead of the game.
My first items on my to-do list:
- Driver’s side electric mirror
- Rear brake/turn signal/back up light unit
- Silencer pad (that sheet of asbestos on the inside of your car’s hood)
I called the dealer and found out that to buy the parts and have them installed would cost $688. Way too much.
The Vespa gathering dust.
Bobbi’s posts about buying used cars got me thinking about selling my husband’s Vespa scooter because we almost never use it. It came out once last summer, to be exact. I’ve never even driven the two-wheeler myself! But its potential for fun and gas savings makes us hesitant to sell. Are we being foolish by not selling it – or by not using it? What would you do?
Pros of selling
Cash – Nada Guides values the 2007 LX50 Vespa scooter at $2,310, a nice chunk of change. (Edmunds and KBB do not value scooters). That would more than cover a summer vacation next month or go halfway to maxing out one of our ROTH IRAs.
No guilt – We won’t feel guilty every time we see the Vespa gathering dust in the basement. And we won’t be bogged down by the Vespa’s inertia, currently greater than our motivation to get it
Jodasadetatte/Flickr
Car insurance makes us groan every time we think about it. Nobody looks forward to that letter that reminds us our policy is due for renewal, but fortunately there are a few easy things we can do to get the best possible deals on our car insurance.
Shop around
Many people miss out on the best car insurance deals by simply staying with their usual insurer. Use an insurance price comparison site like moneysupermarket.com to directly compare your insurer’s quote with the available other quotes on the market, and don’t be afraid to change your insurer!
Buy online
Many insurers only offer their best deals online, so get yourself connected and surf away for the lowest priced policies. If you can afford to pay for the whole policy up front, you could save some money on the interest that often applies to insurance by monthly payments.
Cut out the extras
If you feel you would be able to cope without your car for a short time, choose not to pay for a courtesy car as part of your insurance policy. Optional extras like courtesy cars and legal expenses are often unnecessary and only serve to drive up the price of your cover.
Pay as much excess as you can
The more voluntary excess you offer to pay in the event of an accident, the lower your insurance policy price will be. If you can afford to increase your excess, it could save you money as long as you drive safely and avoid accident.
Measure your mileage
One of the factors used to calculate insurance policy prices is your annual mileage. To avoid paying over the odds, make sure you don’t overestimate the number of miles you’re traveling each year. Equally, don’t underestimate your mileage either, as this would be considered an act of insurance fraud if you were caught doing so.
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Beep beep! Avoid these gas wasting pitfalls. Credit: ollesvensson/Flickr
The April 2011 issue of AAA’s Horizons newsletter has an article by “The Car Doctor” John Paul that outlined six pitfalls that reduce your fuel efficiency and gas mileage. How many are you guilty of?
- Old spark plugs and filters can reduce your gas efficiency by 5 percent.
- A lit check engine or service engine light means you are wasting gas. Modern cars have computers to monitor engine efficiency, so trust them.
- A faulty (more…)
This bumper sticker is stuck at home during my car-less Lent!
It’s been two weeks since I gave up my car for Lent as a financial experiment and I’m surprised to say that not much in my life has changed. I’ve walked three trips that I normally would have driven, saving myself 12 miles of driving, but I have not needed to hop on the bus or drag my bike out of the basement. Mostly, I’ve been carpooling a lot.
I’ve realized four things now that I’m driving less:
- Walking is more relaxing than driving
- I have more time to call friends and family when I walk somewhere
- Walking (more…)
No car means no cruising for Dogwin!
I’m not religious, but most years I give up something for Lent to remind myself what sacrifice feels like. It makes me grateful for all that I have, and mindful that many others have much, much less. It’s also a fun way to challenge myself to save money. Last year I gave up meat after calculating how much more expensive meat is than vegetable protein.
This year I’m considering giving up my car after reading that driving takes $7,095 out of my community each year. My yearly auto expenses are much less than $7,095 because I paid for my used MINI out of pocket. But certain auto costs do go out of town. My insurance company is out of state and if my car broke down, there is not a repair shop in town to service it. By not driving I am redirecting out-of-town dollars to in-town dollars, in theory.
What makes giving up a car interesting is that I’m not sure I’m going to save any money by not driving. A trip to (more…)
DaLee_pl/Flickr
A provocative ad in my Feb. 14, 2011 issue of Time magazine charges that every car you own extracts $7,095 per year from your local economy. The total includes gas, insurance, the purchase price, and finance charges. A measly $1,390 per year stays in your community, including the cost of your license, taxes, repair, tires, registration, and maintenance. The total yearly car spending – $8,485 – is based on a AAA stat. The ad is paid for by Intelligent Cities, a project from National Building Museum, was created by an act of Congress in 1980 and is devoted to studying the built environment and its impact on people’s lives.
Give up your wheels, start walking, and spend more money in your hometown, is the message. If 15,000 people in one community gave up their cars, that would be an extra 127 million dollars to spend. How many jobs would that create? How much (more…)
Hugo90/Flickr
By Bobbi Burger Brunoehler of Bobbisbargains.
Out of all of the things I never wanted to learn about, at the top of my list was CARS! But I spent the last three months learning how to get a great deal on a “new” used vehicle for my family.
I tried in every way imaginable to get someone else to take responsibility. But it became apparent that anyone else would head to a used car lot, find a car that they “loved” and could afford, and buy it without digging deeper into the history, maintenance and reliability of the car. I finally gave in and began what will be known as “my year of living dangerously learning about cars.”
Although my search is not over yet, I have gained valuable knowledge about how to buy a used car. (more…)
thehume/Flickr
Readers responded to my post on how I saved $3,100 using tips I received from BargainBabe.com readers with requests for help. Please leave a comment if you have ideas for them.
Cindy in San Jose wrote:
I am looking for someone to repair my dryer. Thank you, Cindy
Yazmin in Los Angeles wrote:
Hi, I am purchasing a foreclosure home in Los Angeles. We hired an inspector and told us that whole house needs to be rewired. Our agent recommended her electrician (licensed). He went to see the house and he estimated (just labor) $1900 and we can buy material estimated $850. I am trying to stick with a licensed person. We did not expect this expense when we considered purchasing the house. We still need to buy paint and carpet/tile. I need you help please!! Yazmin
Lisa in Studio City/Sherman Oaks wrote:
Hi Julia- In reference to your article today about the Mini repairs, I’m looking for a reliable alternative to the dealer for my ’05 Honda Pilot with 66,000 miles. Needs service YESTERDAY (that crazy “maintence required” light keeps coming on!!), so any help would be appreciated
thanks, Lisa
Related posts:
Upholstery, Landscaping, and Auto Body Repair at a deep discount
By Bobbi Burger Brunoehler of BobbisBargains.
Do you have a son or daughter 21 years of age or younger who has their driver’s permit or license? Heck, maybe you are 21 or younger.
If so, you are in luck because there is an amazing free defensive driving school program called Driver’s Edge. This program was created in 2002 in response to the outrageous statistic that car crashes are the number one cause of youth deaths in America.
Driver’s Edge is a free educational program that teaches young drivers to know what to do during an emergency driving situation such as hyper-planing or super-quick swerving. Last year, my teenage son was lucky enough to grab a spot and participate in one of the four-and-a-half hour classes. The instructors were all professional race car drivers and performance driving instructors. The classroom portion was fast paced and MTV style. Then, the participants got behind the wheel of a car and practiced what they just learned, including skid control and evasive lane change maneuvers. My son said it was very cool.
You must be between the ages of 15 and 21 to attend this program. However, parents of participants are encouraged to attend. Driver’s Edge is headquartered in Las Vegas, but they tour around the country. You pre-register online and then the organization emails you when the registration for your area will take place. There is very limited space and they fill up quickly. When I last checked there were upcoming free classes in Los Angeles, Oakland, and Seattle. Even if the classes are filled for this year’s tour, sign up so that you can attend a class during the next tour.
The program is funded by donations, grants and sponsorships. Bridgestone North America Tire is a major sponsor of this program. It’s a good thing, because they go through a ton of tires due to the skidding and severe braking done during the driving portion of this class.
Several months after my son took the free class he was driving on a rainy night. I was not worried because he had taken this program. Peace of mind is a wonderful thing.
