Car insurance is a necessary expense, but that does not mean you have to overpay for it. If you are looking to lower your premium without sacrificing protection, here are some smart ways to save money on car insurance.
1. Shop Around and Compare Quotes
Insurance rates can vary widely between providers, so it is always a good idea to get multiple quotes. Shopping with an independent insurance agent means you will get multiple quotes in one stop!
2. Bundle Your Policies
Many insurance companies offer discounts if you bundle your auto insurance with other policies, such as homeowners or renters insurance. This can lead to significant savings while simplifying your insurance shopping.
3. Increase Your Deductible
Your deductible is the amount you pay out of pocket before insurance kicks in for each claim. If you can afford a higher deductible, you will typically see lower premiums. Just be sure you have enough savings to cover it in case of an accident.
4. Take Advantage of Discounts
Insurance companies offer a variety of discounts, so it’s worth asking about what you qualify for. Some common discounts include:
· Safe driver discounts for having a clean driving record
· Good student discounts for young drivers with good grades
· Low mileage discounts for drivers who drive less
· Telemetrics discounts if you use an insurance carrier’s device to track your driving habits. Good drivers can qualify for larger discounts.
5. Know the Factors that Affect your Premium
· Type of Vehicle- High performance or luxury vehicles typically cost more to insure
· Credit Score- In many states, a high credit score means lower rates. Pay your bills on time, reduce debt and monitor your credit report for errors.
· Insurance Longevity- Having a consistent history of coverage with no lapses makes for lower rates.
6. Reduce Unnecessary Coverage
If you have an older car, it may not make sense to carry comprehensive and collision coverage, especially if the cost of the coverage exceeds the car’s value. Consider dropping these coverages if they no longer provide good value. If you have multiple vehicles, consider dropping rental car reimbursement coverage. If you have a local towing service or AAA, you may not need towing coverage. All of these optional coverages can save you premium if they are things you do not need.
Final Thoughts
Your insurance needs can change over time. Review your policy each year to ensure you are getting the best deal. Life changes such as moving, getting married, or improving your credit score can impact your rates, so updating your policy could lead to savings.
Saving money on car insurance does not have to be complicated. By shopping around, taking advantage of discounts, and adjusting your policy based on your needs, you can reduce your costs while still maintaining the protection you need. Take some time to review your options and start saving today!