How to Save Money on Your Car Insurance

Posted Friday, Dec 19, 2014 by nhtwpprod

Even with the cost of gas, repairs, and maintenance, one of the most expensive parts of owning a Los Angeles Toyota is carrying insurance. Carrying as much insurance as possible is a good way to protect yourself, your passengers, and other Southern California drivers, but that doesn’t mean there’s no reason to try to save as much money as possible on your car insurance premiums. By following these money saving tips, you can stay protected on the road while also saving money.

  • Shop for insurance ahead of time – If you’re looking to buy a new car, it’s a good idea to start pricing out insurance ahead of time. If you wait until after you’ve already bought the car to find car insurance, then you might end up being surprised by a higher premium than you’re expecting. The type of car you have can have a big affect on the cost of your insurance coverage, sometimes in unexpected ways. Everyone knows that drivers of sports cars, large trucks, and SUVs tend to pay higher rates, but some smaller cars also come with higher than usual rates. Insurances companies don’t just look at how much damage a car is likely to cause to another vehicle (hence the high rate for trucks and SUVs), but also how much damage the policy holder’s car is likely to take in an accident (and thus, how much it will afford to repair it). If the compact car you’ve got your eye on takes more damage than other similar cars in crash tests, then it may have an unexpectedly high associated insurance rate.
  • Pay attention to your credit – Keeping your credit score high is now even more important than it used to be, because car insurance companies are now allowed to use a policyholder’s credit history in determining how much they need to pay for coverage. The lower your credit score, the less financially reliable you appear to insurance companies, and the more they will charge you for coverage. If you miss insurance payments on a regular basis, this can also cause the cost of your car insurance policy to go up.
  • Avoid traffic violations – Insurance rates vary among different demographics. For example: most accidents are caused by male drivers under the age of 25, so male drivers ages 16-24 pay more on average for insurance. There isn’t a lot that drivers who fall into high-cost categories can do to offset those higher premiums, but one thing that is true across all demographics is that those drivers with clean driving records pay the lowest rates in their price brackets. Getting parking tickets, moving violations, and being in accidents can all cause a driver’s insurance rates to go up.
  • Find available discounts – Many insurance companies offer discounts that can lower your premiums. If you drive less than 7500 miles a year, for example, you might be able to have your insurance rate lowered. Safety features such as air bags and alarms can also reduce insurance costs, as well.
  • Drop unnecessary coverage – There may be some optional parts of your insurance plans that you may be able to opt out of. Most insurance plans cover towing after an accident as part of collision coverage, which means that dropping tow service coverage will likely end up saving you money in the long run, even if you do ever end up having to pay for a tow or two.

For more information on how you can save money on your car insurance, visit your Los Angeles Toyota dealership today and speak with an agent. If you’re shopping for a new or used car, our sales team can give you advice on how to find additional insurance savings. Come by North Hollywood Toyota during business hours, or call us at (800)-800-6730.