Ways To Save Money If You Own More Than One Car
In addition to your monthly car payment, buying insurance for a vehicle can also be a costly expense. The good news is that there are many ways to save money on auto insurance, especially if you happen to own more than one car. Here are some great tips on how lower your insurance costs when you have multiple cars.
Multi Policy Discount
Most insurance companies will actually give you a break on rates if you insure more than one car with them. This is often referred to as the multi policy discount. Because the insurance carrier is collecting more premium from you in order to insure multiple cars, they have some extra room in their profit margins to give motorists a discount. The amount of money you can save on a multi auto policy will vary, but it often can be as high as a 20% reduction.
Low Mileage Coverage
Many families that own more than one car often find themselves driving one vehicle a lot less frequently than other one. Insurance companies base their premium rates on risk and the amount of miles driven each year plays a big part in determining the chances of an accident occurring. If you have a vehicle that is not driven very often, find out if your carrier will offer a low mileage discount policy. Usually insurance companies will offer this kind of coverage if a car is driven less than 7,500 miles per year. In order to qualify for this, you will have to submit the mileage for your car at the beginning of the year and then again at the end of the policy term. You will be pleasantry surprised at how much a low mileage policy will save you.
Liability Coverage Only
Most auto insurers will be happy to offer you liability only coverage for your older or high mileage cars. If you have a car that is paid for and is no longer worth a great deal of money, you can save a significant amount of premium dollars by removing physical damage coverage from it. Liability only polices will protect you against any injuries you cause to other people or property, but not to your car itself. In the case of an accident with liability only coverage, you would be responsible to pay out of pocket to repair your car’s damages. This type of policy can reduce insurance expenses quite a bit, as long as you are comfortable with paying to fix your car should the need arise.
Saving Money with Multi Car Discounts on Insurance
While it is true that your insurance costs will be higher if you own more than one car, there are some great ways to take advantage of multi car ownership in order to save money on insurance expenses. Find out if your insurance company offers a multi auto discount if you put all of your vehicles under one policy with them. Also, see if you can get some additional money off my committing to only driving one of the cars less than 7.500 miles per year.
For an older car, liability only coverage is a great way to reduce insurance costs as well. Lastly, if you have any younger drivers on the policy and they are good students, your carrier might be willing to give your son or daughter a break on their rates if they have good grades. Researching all of these insurance options with regard to multi vehicle discounts might initially take some time, but it will be well worth it in the long run.