Tips from a Tax Professional to Reduce Auto Insurance Costs for Agents – RealTrends | CarTailz

A reliable vehicle is essential for real estate agents to provide quality service. Whether you own or lease your vehicle, almost every state requires you to have auto insurance. If you are traveling for business, you may also need commercial car insurance.

While the costs of these policies can add up, there are ways for agents to be compliant and still save money on auto insurance.

What does car insurance cover?

Your car insurance is an insurance package that protects you from various potential financial losses, including:

  • Property insurance reimburses you for damage to your vehicle. For example, accident insurance pays for repairs after you are involved in an accident with another car. Comprehensive coverage pays for non-collision claims, such as theft and damage from a natural disaster or an animal. There are separate deductibles for Collision and Collision Damage Waiver, which are the amounts you must pay before coverage begins.
  • Health insurance pays for injuries to you or your passengers after an accident. This is known and required in some states as Personal Injury Protection (PIP).
  • Liability insurance pays for certain costs if you become involved in a legal dispute.

You can usually also buy:

  • Uninsured or underinsured motorist coverage applies if you are involved in an accident involving a culpable driver who is uninsured or does not have adequate coverage, or you are involved in a hit and run.
  • Glass cover paying for damaged windows.
  • Roadside assistance that pays if you break down in your vehicle.
  • Rental car insurance that pays the rent while your vehicle is being repaired.

7 tips to reduce the cost of car insurance

States and auto lenders have different requirements for the types and amounts of auto insurance that drivers must purchase. However, other factors that will affect your rate include your vehicle make and model, annual mileage, driving history, credit score (in most states), age, gender, and marital status. Commercial auto insurance can also take into account your years of driving experience and your type of business.

While you may not be able to change certain factors that determine your car premium (such as your age or your company), here are seven ways to reduce insurance costs.

1. Be a safe driver. Getting a moving violation, DUI, or causing an accident is the quickest way to increase your car premium. So keep your driving record clean by obeying the speed limit, avoiding distractions, and being a defensive, vigilant driver.

2. Increase your deductibles.
The higher your deductible, the lower your premium. However, potential savings vary from state to state and insurer to insurer. Keep in mind that increasing the deductible means you’ll have to pay more out of pocket for claims. Therefore, unless you have enough savings, it is never advisable to increase them.

3. Build and maintain excellent credit.
Your credit score significantly affects how auto insurers in most states rate you. They use credit-based insurance ratings to estimate your potential risk and likelihood of making a car claim, if permitted. So always pay bills and creditors on time so you can build and maintain excellent credit.

4. Bundle your policies.

Many insurers reduce premiums if you purchase more than one type of coverage, e.g. B. Car and home owners, known as “bundling”.

5. Understand possible discounts.

Auto insurers offer various discounts that you can qualify for, such as:

  • Multi-Vehicle for purchasing coverage for more than one vehicle
  • Low mileage for driving fewer annual kilometers.
  • Trained driver to complete a defensive driving course.
  • Good student for drivers age 26 and younger who have at least a “2” average in high school, college, or grad school.
  • Profession for working in certain professions, such as B. medicine or pedagogy.
  • Homeowner (even if insured with another carrier).
  • Loyalty to be a customer for a certain period of time.

If you have commercial auto insurance, you may qualify for rebates if you hold a commercial driver’s license (CDL) or pay for your annual policy in full. However, a safe driving record is one of the best ways to keep commercial car premiums down.

6. Sign up for Usage Based Insurance (UBI).
Most statewide insurers offer programs that offer potential discounts based on your vehicle usage and driving habits. They give you a device to keep in your vehicle that syncs with a mobile app to track various metrics – like: B. your mileage, average speed, time of day and braking patterns – to determine if you are a safe driver.

7. Buy and compare policies.

Because insurers offer different rates, discounts, and price you differently, it’s important to regularly review and compare car insurance quotes. Intermediaries should compare the tariffs of at least three providers at least once a year. That’s the best way to know if you’re leaving insurance money on the table.

Laura Adams is the author and host of the Money Girl podcast.

This content should not be considered as accounting or legal advice. Consult your local tax or legal professional in your state for appropriate strategies.

This column does not necessarily represent the opinions of the editors of RealTrends and its owners.

To contact the author of this story:
Laura Adams at laura@lauraadams.com

To contact the publisher responsible for this story:
Tracey Velt at tracey@hwmedia.com

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