You can save money on auto insurance by shopping around, increasing your deductible, and taking advantage of discounts among other strategies.
The Top Line
- When trying to save money on car insurance, make sure to weigh all of your options so that you get the full picture and take advantage of a competitive market for your business.
- Preparation is one of the best things that you can do. Be sure to set your expectations and search for services and companies that are able to meet them.
- You might be paying for too much coverage. Evaluate your coverage needs and ensure you aren’t paying for anything that you don’t need. Overcoverage is one of the most common reasons that car owners find themselves paying too much.
If you are a car owner, you know the burden that car insurance can put on your finances. Car insurance is one of the most expensive aspects of owning a car. With proper methods to help you find the lowest rates, you can save hundreds of dollars a year on car insurance and ensure that you have car insurance that is still adequate for your needs.
However, when it comes to lowering your car insurance, many people don’t know how to get started. Everyone should know how to lower this critical part of your monthly expenses associated with owning a vehicle. In this guide, we’ll show you some popular ways to lower your car insurance and ensure that you are getting the best possible rate without compromising on the quality of your insurance.
Weigh the Options
If you want to lower your car insurance and ensure that you are getting the best rate for your car insurance, one of the best things that you can do for yourself is to weigh all the options and shop around. When you evaluate more options for car insurance, you tend to find lower rates. It’s not always the best option to go with the first car insurance provider that you see advertised.
Shopping for car insurance is a lot like shopping for other goods and services in that you have to do a bit of digging to find the best rates. The good news is that there are plenty of tools out there that can help you with this and help you to narrow down car insurance companies by the best rate. Utilize these tools and shop around and you will be sure to find the most competitive rate for your car insurance.
If you know that you are going to be purchasing a car and that you will need car insurance, then one of the best things that you can do to help your situation is to be proactive. Get ahead of the curve and start preparing when you know you're going to be purchasing a vehicle. This will allow you the time and options that you need to find the best rate.
If you wait until the last minute when you are up against a deadline, you will quickly find that it is difficult to find the lowest rate because you will be focused on simply finding the first rate that is presented to you. Always be prepared and be proactive if you want to enjoy a good car insurance rate for the vehicle that you plan to purchase.
Switch to Higher Deductibles
The deductible of your car insurance is the amount that you are expected to pay out-of-pocket when you file a claim. These can range from low deductibles such as $500 to high deductibles such as $2,000. The amount of your deductible will often have influence over the car insurance rate that you are quoted. High deductibles will generally have a lower rate over time. If you are a safe driver with a good record, it might work out better to take an insurance plan with a high deductible.
Since it is not likely that you will have to file a claim, you could certainly see the argument behind taking a higher deductible. In many cases, it is worth it to save more on the monthly payment and instead be at risk for a higher one-time payment if you file a claim. This is a smart decision for those who don’t file many claims or are financially comfortable enough to know that they can pay the higher deductible when it is time.
If you find that you need to lower your monthly car insurance payment, one thing that you can certainly do is to reduce the coverage that you are paying for. This reduces the amount that you are covered up to, but for many people, it will save them money monthly. There are many instances in which people find that they are paying for more coverage than what they need in reality. If you believe this to be the case, you should consider reducing your coverage to save money monthly on your car insurance bill.
Utilize the Bundle
Many insurance companies are beginning to offer packages called bundles. These are applied when you have more than one type of insurance with one company. This could be car insurance and home insurance, for instance. Most of the time, a bundled insurance plan is able to save you money. Insurance companies offer this discount to entice you to keep your insurance with them, but it’s almost always worth it to take advantage of the offer. If your insurance company does offer a bundle option, you would be wise to utilize it.
Have Good Credit
Many people don't know this, but your credit can have a sizable effect on your auto insurance rates. Insurance companies do often check your credit when determining what rate to offer you for car insurance. Those with good payment histories and a favorable credit report are much more likely to enjoy lower rates and better terms of their insurance as well. If you are thinking of applying for car insurance, you might also consider taking whatever steps you can to improve your credit beforehand to position yourself for better rates.
Take Advantage of Discounts
One of the great things about large insurance companies is that they often offer several dozen different discounts that can be taken advantage of. Insurance companies will give out discounts for many things including student driver discounts, car alarm discounts, home bundle discounts, and a variety of other things. If you want to get the best rate possible for car insurance, then part of your strategy should be to utilize the discounts that are available and applicable to you and your situation. The best way to determine this is to go through an automated application or speak with an agent. Make sure to provide any information you feel may be relevant to the discounts that they have to offer.