9 Ways To Save Money On Car Insurance

Ways to save money on car insurance

Do you know how to reduce your car insurance rates without sacrificing service or coverage in the process? Almost nations are requiring drivers to have car insurance. What should you do if you are trying to cut your expenses? Let’s face it. You will be glad to know that it is simple to reduce your auto insurance costs and still comply with the law. Your savings will vary significantly depending on your vehicle, driving record, as well as location; however, it could add up to hundreds of dollars each year. We are happy to provide you with a variety of suggestions that help you save money on car insurance with not sacrificing the quality in the process.

9 Things You Can Do To Reduce Your Car Insurance Costs

Ways to save money on car insurance

Before going to tips for lowering car insurance costs, you need to know six different types of car insurance coverage including:

  • Collision coverage pays
  • Bodily injury liability coverage pays
  • Personal injury protection (PIP) coverage pays for any injury
  • Comprehensive coverage pays
  • Property damage coverage pays
  • Underinsured and uninsured motorist coverage pays

Here are 9 good ways to save money on car insurance while keeping the coverage you need to protect your finances and stay safe.

1. Shop Regularly

Shop regularly

It is very important to shop almost types of car insurance policies on a regular basis such as once a year. So, if you have never shopped your car insurance, or it has been a while, do not put it off any longer because you are possibly leaving money on the table.

Many experts uncover that the easiest way to shop types of car insurance policies is online by using some free websites such as Insurance Quotes or Car Insurance Quotes. These websites let you get multiple quotes at once from the top insurance providers. They also help you save a lot of time and hassle.

After you compare quotes, maybe you feel that your actual insurance provider gives you a great deal, however, you will not know until you shop a number of different companies.

Shopping for auto insurance possibly is not something you look forward to do each year. Nevertheless, since it helps many car owners cut their expenses, I promise that it is well worth the effort.

If you want to know more about how to save money on car insurance, The Insider’s Guide to Saving Money on Auto Insurance is the best guide you should read.

2. Ask About Discounts

Ask about discounts

Almost insurance companies provide a variety of discounts; however, they do not always advertise them. Therefore, you should speak up and ask insurance companies about how you can qualify for a lower premium.

For example, you typically get a considerable discount for buying multiple polices with the same car insurer, such as having more than a car insured or your auto and renter’s insurance. In addition, you may get discounts if you:

  • Have a good driving history with few or no accident
  • Drive a car with safety features such as anti-lock brakes or airbags
  • Be a student with the high grade point average
  • Work in certain occupations such as education, medicine, or engineering
  • Complete an accident prevention course or defensive driving course
  • Serve in the military

Furthermore, you can ask about discounts for the following:

  • College students away from home
  • Antitheft devices
  • Homeowners and auto coverage with the same company
  • Drivers Ed courses
  • Higher deductibles
  • Good credit record
  • Long-time customer
  • Low annual mileage
  • No accidents in 3 years
  • More than 1 car
  • No moving violations in 3 years

The discounts that are listed might not be available in all nations or from all insurance companies. To know other ways to save money on car insurance, continue reading this article.

3. Raise Your Deductible

Raise Your Deductible

You should try your best to get the highest deductible possible. A deductible is an amount of money you have to pay when getting into a crash or before insurance benefits begin. For car insurance, you normally can select a deductible such as $1,000, $500 or $200. If you choose a high deductible, you will lower your premium.

However, the risk of a high deductible is that when you have a car accident, certainly you must pay more for a repair cost out of your own pocket. Therefore, you should never raise your deductible unless you are confident that you have enough money to cover it.

If you want to know more about how to save money on car insurance, The Insider’s Guide to Saving Money on Auto Insurance is the best guide you should read.

4. Maintain A Clean Driving Record & Good Credit

maintain a clean driving record and good credit review

Maybe you will be surprised to know that the credit can play a big factor in the rates that you are quoted for your car insurance. Almost car insurers will use credit scores as a main tool to help gauge how risky a client can be. The best ways you can do to maintain your good credit scores are to pay your bills on time as well as manage your credit accounts responsibly. In addition, another factor that car insurers can use to gauge risk and then set premiums is your driving record. If you have many accidents or multiple moving violations on your motor vehicle record, you will have to pay higher insurance premiums.

5. Assess Your Insurance Needs

Assess your insurance needs

You do not buy more protection than you truly need. If you do not have ample savings to replace or repair your car when it were stolen or destroyed, then you certainly need collision and comprehensive coverage pays (2 types of car insurance coverage). In addition, if you have an older car that is paid for, you should also consider dropping comprehensive and collision coverage pays. Experts say that you should not buy those types of coverage if the annual premium is not 10% or less of Blue Book value of your car. Otherwise, you will pay more in your premiums than you can collect in benefits.

Nevertheless, no one should go without having injury coverage and liability coverage because if you are in a serious car accident, maybe you are sued for an enormous amount of money. Each nation has its minimum requirements for how much the liability coverage you must have – however, it is possible that you can need more. For example, if you live in Florida, you must pay your car insurance up to:

  • $10,000 for the property damage liability
  • $10,000 to cover medical costs or $20,000 limit/accident
  • $10,000 for personal injury protection/person

These premiums are very low limits, which are not likely to protect your assets such as savings, real estate, and investments. Therefore, you should never scrimp on the liability coverage because that is where insurance truly provides you with a strong financial safety net.

Keep reading this article to know other ways to save money on car insurance.

If you want to know more about how to save money on car insurance, The Insider’s Guide to Saving Money on Auto Insurance is the best guide you should read.

6. Ask About Group Insurance

ask about group insurance review

Some of companies are offering reductions to drivers who have the insurance through a group plan from their employers, or through alumni and business groups, or from other associations. You should ask your employers and then inquire with clubs or groups you are a member of to see if this way is possible.

7. Buy Homeowners & Car Insurance From A Provider

Buy Homeowners & Car Insurance From A Provider

 

If you already get homeowners insurance, you should contact with your insurer and ask them if they offer car insurance. Maybe you will get a multi-policy discount for buying both from the same provider. This will help you save on your car insurance and home-owners policy.

If you want to know more about how to save money on car insurance, The Insider’s Guide to Saving Money on Auto Insurance is the best guide you should read.

8. Let Insurers Monitor The Car

let insurers monitor the car review

There are a lot of insurance companies, which are offering a “black box” or “telematics” insurance policy. This policy requires drivers to get a GPS device that is installed in their car to track how their car is being driven. This will help reduce the cost of car insurance and help the motorist drives safely and well. You can use satellite navigation technology that has revolutionized car insurance.

9. Do Not Pay In Monthly Installments

do not pay in monthly installments review

You should know that additional administrative fees will be commonly applied to payments when you divide your car insurance costs into installments (such as semi-annual, monthly, and quarterly). You should be aware that a monthly fee of $7 might add up to $100 a year.

To see other articles about fashion,travel, food and wines, home and garden, self-help and relationship advice, go to our main Lifestyle page.

After reading my overview of ways to save money on car insurance, I hope that it helps you choose the best types of car insurance that will save you more money. This post is part of a series about tips and advice on saving money. Got a question? Need answers? Leave a comment below. Now are you ready to try using some of these ways to save money on car insurance?

If you want to know more about how to save money on car insurance, The Insider’s Guide to Saving Money on Auto Insurance is the best guide you should read.

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