Most Pennsylvanians complain about the cost of their car insurance--hardly surprising, given that a typical car insurance policy in Pennsylvania costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can Pennsylvanians lower their premiums and save money?
If you own a car in Pennsylvania and drive it, going without insurance is not an option. In Pennsylvania, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.
Specific ways to save money on car insurance in Pennsylvania:
- Shop around.
One of your first steps should be to shop around. A particularly good time
to investigate your alternatives is when your current policy is up for renewal,
especially if you find that your premium has gone up. You may be surprised
to learn that auto insurance premiums for the exact same coverage on the same
car can vary widely (by hundreds of dollars) between different insurers, even
in states that regulate auto insurance rates.
- Increase your deductible.
For many people, raising the deductible on their auto insurance is a good
way to cut the cost of the policy. Sometimes you can reduce your annual premium
by 10 percent or more if you increase your deductible from, say, $250 to $500.
If you do this, however, make sure you have the financial resources to handle
the larger deductible when the time comes.
- Keep an eye on your credit report.
Your credit history is an important factor for most auto insurance companies.
Many studies have shown a correlation between your credit history and the
risk to an insurance company. Paying your bills on time and maintaining a
good credit history will allow you to enjoy lower auto insurance rates.
- Don't use your car for business purposes.
Since work-related driving generally subjects you to a higher premium than
pleasure driving, it may be in your best interest to stop using your car for
business purposes.
- Buy a low-profile car.
Cars are rated on a risk scale for auto insurance purposes. In general, sports
cars and other high-performance, flashy vehicles are classified as higher
risks because they are common targets for thieves and vandals, and because
statistically, the people who own them tend to drive more recklessly. If you
own such a vehicle, you will likely pay a higher premium than if you owned
a station wagon, sedan, or other low-risk vehicle.
- Keep your car in a garage.
Cars parked in garages are less likely to be stolen, vandalized, or struck
by other vehicles. Using a garage to store your car may entitle you to a slight
premium reduction.
- Have safety/anti-theft devices installed.
You may receive discounts on your insurance if your car is equipped with one
or more of the following options: anti-lock brakes, automatic seat belts,
and airbags. Similarly, anti-theft devices such as car alarms and tracking
systems (e.g., Lojack) may also get you a discount because they reduce the
chances of your car being stolen or vandalized.
Please note that this description/explanation is intended only as a guideline.