Car insurance can be expensive, especially if you don’t know what coverage you need. If you are looking for ways to cut down on how much you are paying on car insurance, here are a few tips you can use.
This is the most effective way to lower your car insurance. Unless you are an unlucky driver who seems to always be getting in an accident, having a low deductible is a waste of money. Try raising your deductible from $500 to $1,000, or even $1,000 to $1,500 and see your monthly insurance bill drop. And take that extra money and put it in savings so that if you are in an accident, you’ll have the money to pay the $1,000 deductible. Fingers crossed that doesn’t happen.
There is a lot of coverage that car insurance companies try to sell you that is just unnecessary. For example, if you already have full coverage from your car insurance, you don’t need rental car insurance, since you are already covered. If your car isn’t even worth the deductible to get it fixed, it isn’t worth having collision coverage. Also, if you have health insurance, you don’t need personal injury protection, since you are already covered.
Driving mileage is one of the determining factors of your insurance rate, which is why you should be as accurate as possible when estimating that number for your insurance provider. If you have the ability to cut down on your mileage through carpooling or taking public transportation, that will definitely lower your car insurance rate.
Not surprisingly, your credit score will help determine your insurance rate. If you have a low credit score, you will be charged more, since you aren’t viewed as trustworthy when it comes to paying on time. If you can clean up your credit score, you might be able to negotiate a lower rate on your car insurance.
Car insurance companies offer a wide range of discounts for drivers, from safe driving discounts to senior citizen discounts. If you are a student, have multiple cars to insure, or even have an anti-theft device on your car, you could be eligible for a discount. Talk to your insurance company to see which discounts you qualify for. If you are over 50, you can get a discount on car insurance from AARP.
This is probably the most important step. There are so many different factors that go into determining your car insurance rate that each company will have a different rate to offer you. It’s best to shop around and make sure you are getting the best deal. That doesn’t just mean the cheapest insurance, because some of the cheaper insurance companies skimp on coverage. Make sure you are getting the best deal for everything you are being offered before you commit to one car insurance company. Allstate claims big savings when switching from your current car insurance. Get a quote from them to see how much you could save.
This is the easiest way to save. Once you find a company that you really like and treats you well, stick with that company as long as you can. Most car insurance companies offer discounts for customers who are loyal. If you have been with a company for a while and they haven’t offered you the discount yet, ask them about it. Most car insurance companies will be happy to offer it to you in exchange for your continued business.
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