Car insurance is a necessary expense that no one wants to pay. Depending on the car and your driving record, the annual premium can cost thousands of dollars a year. But there are some ways to tackle these high rates. We’ve compiled six strategies to save money on car insurance.
1. Research and Come Up With a List of a Cars
Don’t fall in love with a car and buy it. If you’re interested in a vehicle, call your insurance agent and find out how much it will cost to insure it. Different cars have different rates from your insurance company. And you might buy one that is expensive to cover, significantly impacting your overall car insurance cost. It's important to keep your options open, not just around the sticker price of the car but what the monthly or annual insurance premiums will be.
2. Check Coverage Options and Policies
Go through your policy with your agent and see what coverage you have. Comprehensive coverage protects your vehicle from non-collision incidents like theft, vandalism, and weather damage, which can affect your premiums. You may be paying for coverage that you don’t want or need. Eliminate it to save money on your premium. Car insurance costs vary widely based on the type of coverage. Liability insurance is going to be much cheaper than full coverage insurance; however, that's something that you'll need to weigh the pros and cons of to see which type of car insurance coverage is best for your needs and budget.
3. Be a Safe Driver
A poor driving record could send your car insurance premium through the roof. That means no speeding or taking chances behind the wheel. Always drive defensively. Consider taking a defensive driving course if you’ve had some driving issues, as it can help reduce your premiums. Ask your insurance carrier if they sponsor one or where you can take one. Often, the state motor vehicle department provides them.
4. Set Up Automatic Payments for a Discount
Many insurance carriers offer car insurance discounts if you set up an automatic premium payment, so it's important to ask about different discount opportunities. Set it up with a credit or debit card. This is also an excellent way to ensure your coverage doesn’t lapse. But be warned, if you don’t have enough money in your account there could be penalties or cancellation.
5. Increase Your Deductible
If you have a low deductible, consider increasing it. The higher the deductible, the lower your car insurance premiums. However, you will also increase your out-of-pocket expenses if you have a crash. So do this if you’re a safe driver and have some cash on hand if you are in an accident.
6. Shop Around for a Cheaper Premium
Different car insurance companies have different rates for the same vehicle, making it essential to compare quotes. When you compare car insurance rates, you can find better deals and ensure you’re getting the best value for your money.
Some car insurance providers offer different bundling discounts or just different discounts in general. But ensure you’re receiving the same coverage. A premium may seem lower than your current one, but it only has half the coverage. This could be a problem if you’re in a wreck.
Conclusion
Auto insurance can be frustrating; you need it, but it really takes a bite out of a paycheck. Understanding policy coverage and potential discounts is crucial. Using strategies to lower your premium will help alleviate the financial pain. Hopefully you can find a way to implement some of these strategies to shop around and save on your car insurance costs.
