How to Save Money on Car InsuranceApril 29, 2016
The average annual auto insurance expenditure is $785, according to the National Association of Insurance Commissioners. That may not sound like a lot on its own, but over 60 years, it’s more than $47,000. What if you could lower that number?
Learn how to save money on car insurance with these three examples.
1. Save Money By Lowering Your Coverage Levels:
One of the easiest ways to save money is to lower your car insurance rates by trimming your coverage levels. Be careful: while it’s always great to save money, you want to be sure you’re still properly covered. Here are a few areas where you might find savings by changing your coverage.
- Deductible Debates: One surefire way to cut your monthly premium is to increase your deductible, which is the money you need to pay out of pocket when setting a claim. If you’re a safe driver who isn’t logging significant miles, you may find that the savings of making lower monthly payments outweigh the risks of potentially paying more for repairs.
- The Collision Decision: If you’re driving an older car with high miles (nearing or over the 200,000 mi. mark) you should check your collision coverage. If you can live with the occasional scratch or dent on your car, then reducing or eliminating your collision coverage may help you save money. Some insurers will allow you to have comprehensive without collision. This is an easy way to save money on your car insurance.
- Eliminate Your Towing Expense: Driving habits, driving record, and annual mileage can be key factors in determining whether or not you need towing coverage. If you belong to an auto club such as AAA, then you should check to see if you have any overlap of coverage. If you do, you can remove that duplicate coverage from your auto insurance policy.
2. Everyone Loves a Discount:
Auto insurance companies rely and count on long-lasting relationships with customers in order to be successful. One way they court and keep you as a customer is to generate tons of potential discounts that truly to lower your car insurance premiums help you save money. Here are some discounts to ask about:
- Good Student Discounts: Straight A’s can equal sweet savings.
- Association and Group Discounts: From Mensa to Alma Maters, if you belong to an organization, you may be eligible for a discount.
- Lump Sum Discounts: Paying once per year or even once every six months can save you more than making monthly payments.
- Safe Driver Discounts: Drivers with few accidents and moving violations benefit from lower car insurance rates.
3. Save Money by Comparison Shopping:
Shop around. Get quotes from multiple agencies. This was once a long and tedious process, but thanks to auto insurance comparison sites like Compare.com, which provide multiple quotes from top providers after you provide some basic information, you can get all your quotes in one place.
Using these steps can help you save money by finding affordable car insurance rates and maintaining coverage that’s right for you.
Buying auto insurance can be a confusing and disoriented process. We want to make sure that our users can make informed choices about their car insurance, selecting from as many options as possible. Read our Auto Insurance Buying Guide to educate yourself before you start a quote.