Car insurance is a necessary expense for most drivers. It can help protect you financially if you are involved in an accident. However, that doesn’t mean that it has to be expensive. You can do several things to lower your premiums and keep more money in your pocket. Here are 11 tips for reducing your car insurance costs:
Tip #1 Start by increasing your deductible
Before you start shopping for a new policy or raising your rates, you should look at your deductible. If you have a $500 deductible and pay $150 per month, that’s $1,800 per year. But if you increase your deductible to $1,000, your monthly payments would drop to $120, or $1,440 per year. That saves $360 every year, just by increasing your deductible!
Tip #2 Bundle your policies
If you have multiple vehicles, or if you also need to insure your home and other property, consider bundling your policies with one company. Many insurers offer 10% or more discounts for customers who insure more than one type of property with them. This means you could save money on your car insurance and your homeowner’s or renter’s insurance!
Tip #3 Look for discounts
Insurance companies offer various discounts, so it’s essential to ask about them when shopping around. Some typical discounts include:
- Multi-policy discount (insuring your home and car with the same company)
- Good driver discount
- Student driver discount
- Senior driver discount
- Safe driver discount
For instance, if you recently took a basic driver improvement online course, you may be eligible for a safe driver discount from your insurer. This is because you’ve shown that you’re working to be a safer driver, and you’re less likely to get into an accident.
Tip #4 Increase your auto safety features
One of the best ways to save money on your car insurance premiums is to increase your auto safety features. Many insurers offer discounts for drivers who have airbags, anti-lock brakes, and other safety features. These features make you less likely to get into an accident and less likely to file a claim.
Tip #5 Ask about low mileage discounts
If you don’t drive your car often, ask your insurer about a low mileage discount. Many companies offer lower rates for drivers who put less than 7,500 miles (12,070.08 kilometers) on their cars because they’re less likely to get into an accident. Of course, you’ll need to have proof of your low mileage, so be sure to keep track of your odometer readings.
Tip #6 Pay your premiums annually
Many insurers charge a fee if you choose to pay your premiums monthly or quarterly. By paying your premiums annually, you can avoid these fees and save money because you’re not paying for the convenience of the insurer. This also means you don’t have to worry about your policy lapsing because you forgot to make a payment.
Tip #7 Take a defensive driving course
If you’re a safe driver, you may be eligible for a defensive driving course discount. If you complete an approved defensive driving course, you’ll be eligible for this discount. These courses teach you how to be a safer driver and avoid accidents. Plus, they can often be completed online or in person.
Tip #8 Shop around for the best rates
It’s essential to shop around for car insurance rates because they can vary significantly from one company to the next. Use an online comparison tool like Insurify to compare quotes from different insurers. This way, you can be sure you’re getting the best rate possible.
Tip #9 Consider dropping your collision coverage
If your car is paid off, you may want to consider dropping your collision coverage. This type of coverage is only necessary if you have a loan on your vehicle. If you don’t have a loan, you don’t need to pay for collision coverage because the insurance company won’t pay anything if your car is totaled in an accident.
Tip #10 Review your policy regularly
It’s a good idea to regularly review your car insurance policy to make sure you’re still getting the best rate. If your circumstances have changed, you may be able to get a lower rate. For instance, if you’ve moved to a new address or your credit score has improved, you may be eligible for a discount.
Tip #11 Take advantage of public transportation
If you live in a city with good public transportation, you may be able to take advantage of a discount from your insurer. You’re less likely to get into an accident if you take public transportation. Many insurers offer discounts of up to 10% for drivers who don’t use their cars very often.
Auto insurance is a necessary expense for most drivers. By following these 11 tips, you can save money on your premiums and keep more money in your wallet. So, what are you waiting for? Start saving more money on your premiums today!