10 Tips to Save on Car Insurance. people don’t realize just how much they can save on their car insurance by taking certain measures. Here are 10 practical tips to reduce your car insurance premiums, and make sure you’re getting the most for your money each month. If you follow every tip in this guide, you could save hundreds of dollars each year on your car insurance!
1) Comparison shop
Comparison shopping is the most efficient way to find the best deal. There are many sites that offer free quotes for car insurance so you can get a good idea of how much coverage you will need and what your premiums will be. The quickest way to comparison shop is by going online and filling out one form on multiple websites. You can also ask friends, family, or co-workers if they know of any good rates. You may also want to consider bundling your auto insurance with other services such as home and life insurance. This could save you money in the long run as well as give you added protection against unforeseen incidents.
2) Add a Driver
You may be wondering how you can save money on your car insurance. There are many ways that you can lower your monthly payments and we’re going to share 10 of them with you! One way is by adding a driver onto your plan. If you have an older driver in the family, this is a great way for them to be covered as well. Not only will they pay less for their own coverage, but now they’ll also have the option of driving when it’s not convenient for you. In addition, if something ever happens to one of your cars and it needs to be replaced, then this individual would also benefit from being able to drive the other car.
3) Take Advantage of Free Discounts
1) Discounts for taking a safety course: If you are looking for ways to lower your monthly premium, one way is by taking a driver safety course. This will improve your driving skills and can help prevent accidents. Plus, some companies offer discounts if you take their safety course.
2) Re-evaluate your deductible: A higher deductible means a lower monthly premium because it reduces the amount of money an insurance company would have to pay out in claims if an accident occurred.
3) Compare deductibles across multiple insurance carriers: It is also important to keep in mind that while choosing higher deductibles may seem like the logical thing to do, this decision could backfire when considering what happens in the event of a severe accident with significant injuries. 4) Increase Coverage Limits: You might be surprised how much more coverage costs than what you currently have. For example, adding $500 or $1000 worth of coverage can cost as little as $5-$10/month.
4) Shop Around
Shop around for a better deal. You may be able to save as much as 15% by comparing rates from several different companies and negotiating with your current insurer.
If you have multiple drivers in the household, ask about discounts for having more than one driver insured under the same policy.
If you’re a good driver and haven’t had any accidents or violations in recent years, consider raising your deductible. Your monthly premiums will drop while still providing some coverage in case of an accident or theft.
Adjust your coverage accordingly if you’re retired and no longer drive much. Some insurance providers offer discounts if you agree not to use the vehicle as your primary mode of transportation anymore.
5) Drop Unneeded Coverage
One way to save on car insurance is by dropping coverage for items you don’t need, such as comprehensive and collision. Comprehensive pays for damages not covered by your auto policy such as fire, theft or vandalism. Collision covers damages caused when the insured vehicle collides with another object. These coverages are often sold separately, but they are generally not needed because your liability insurance will cover these types of damages and losses. If you’re shopping around for a new car insurance policy, be sure that the company offers discounts if you have low mileage or if you don’t drive at night.
6) Maintain Good Credit
One of the best ways to save money on your car insurance is by maintaining a good credit score. The lower your credit score, the more expensive your car insurance will be. This is because people with low credit scores are considered higher risk than those with high credit scores. So it’s important that you monitor and maintain a high credit score if you want to keep your rates low and affordable. Here are some tips for doing so:
1) Make sure you have an up-to-date copy of your credit report from all three bureaus – Experian, Equifax and TransUnion. Review your reports thoroughly and dispute any inaccurate information.
2) If you find inaccuracies, contact the bureau in question and request a correction.
3) Keep tabs on your debt levels.
4) Get rid of unused cards.
5) Monitor how much credit you’re using each month.
6) Pay off large balances quickly (within 30 days).
7) Pay bills on time every month.
7) Don’t Drive Drunk or Stoned
Don’t drive while under the influence of drugs or alcohol. Drunk driving is 100% preventable when you designate a sober driver, use public transportation, or find an alternate ride home. Don’t drink and then get behind the wheel. It’s as simple as that.
Don’t speed. Speeding can lead to accidents and tickets, which will both cost you money in car insurance fees over time. Drive at a safe and reasonable pace for traffic conditions and make sure you are focused on the road ahead of you at all times.
Don’t drink and drive; it’s against the law in most states, plus it’s dangerous for everyone else who shares the roads with you! The best option is always not to drink any alcohol before getting behind the wheel.
8) Avoid Traffic Tickets
It’s best to always obey all traffic laws, but it can be tough when you’re in a rush or when the light turns red before you’re able. However, getting a ticket for minor infractions like speeding or failure-to-stop at a stop sign will raise your rates significantly.
1) Make sure you have the minimum coverage required by law in your state and that your deductible is no more than $500.
2) Use gas sparingly and make sure that your tires are inflated properly. These two things will help increase fuel efficiency and decrease wear-and-tear on the engine and car body, which can also lead to lower insurance rates.
9) Buy Used, Not New
Buying a new car is exciting, but it can quickly become a financial burden. If you’re in the market for a car, don’t forget to consider all of the ways buying used can save you money! Plus, many used cars are just as dependable and safe as newer models.
- The resale value of your trade-in may be lower if it is a new car.
- Newer cars depreciate faster than used ones so while your monthly payment might be lower with the purchase of new, you’ll end up paying more over time.
- Buying used usually means there will be less depreciation on your purchase price because it has been driven less and won’t lose as much value as fast if properly maintained.
10) Consider Alternative Ways to Get Around
- Consider public transportation. If you live in a densely populated area, or work near an MRT station, it may be possible for you to get around without owning a car. Public transportation is often cheaper and has more options than owning a car does. Plus, if your company offers reimbursement for public transit expenses, you can get reimbursed for the money that you’re spending!
- Walk or bike instead of driving when it’s possible and safe to do so. Depending on where you live and how far away from your destination point there are sidewalks, biking can be an eco-friendly way of getting around without paying for gas and parking fees!
Conclusion
The best way to save money on your car insurance is by comparing quotes. You can use the internet for this or you can visit a broker’s office. You should also ask around for other people’s recommendations about insurance companies.
You should also make sure that you have enough coverage for your vehicle, which may mean getting more coverage than what is required by law in your state. If you are leasing a vehicle, make sure that the lease includes liability coverage as well as physical damage protection.
Another way to save money on your car insurance is to take advantage of any discounts that might be available, such as being a safe driver, having anti-theft devices installed in your car, paying your premium in full and taking an advanced driving course.
