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By: Aquib Nawab
Finance
Usage-based insurance programs use a device or app to monitor driving performance. They reward safe habits like staying within speed limits, gentle braking and acceleration, avoiding late-night trips, and more with discounted premiums. Sign up while your record is clean to get the full benefits. Rates may go up if you enroll after an accident.
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Choose a higher deductible like $500, $750 or $1000. This will make each claim more expensive for you out-of-pocket, but your premiums will be significantly cheaper. Make sure you have enough savings to cover the higher deductible amount in case you need to file a claim.
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Insurance companies offer many discounts like good driver, defensive driver, low mileage, multi-policy, anti-theft device, student away at school, good student, etc. Ask your agent to review all possible discounts to make sure you're getting all that apply to you. Providing proof like school records may be required.
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Usage-based programs use a telematics device or mobile app to track your driving habits. Safe drivers can earn substantial discounts based on the miles they drive, speed, acceleration, braking, and time of day driven. It benefits those who drive fewer miles or can modify their driving.
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Removing comprehensive and collision coverage on older cars worth less than $2000 can save money if the premiums cost more than 10% of the car's book value. Keep state minimum liability only. Make sure to avoid loans/leases that require full coverage.
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Drive cautiously and defensively to avoid accidents, traffic violations, DUIs, and other infractions. Even a single ticket for speeding or running a red light can raise your insurance rates substantially. Go at least 3 years with a clean record before violations start dropping off your record and rates decrease.
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In some cases, higher liability limits can cost the same or less than state minimums due to fewer claims being filed. Discuss options with your agent. Increasing to 100/300/100 limits adds protection in case you are sued after an at-fault accident.
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Completing a state approved defensive driving course can earn you a discount on your insurance premiums for up to 3 years in most states. Look for online classes which are convenient. Just be sure the course will be accepted by insurers in your state.
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Ask about discounts through alumni associations, employers, church groups, etc. Partnered plans leverage better group rates through aggregated enrollment. You may need to provide proof of membership.
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Paying your full 6-month or 12-month premium all at once costs less overall than paying monthly installments. Just be sure you have the funds available as you won't be able to cancel mid-term if struggling to pay. Also set a reminder for renewal to shop around.