Car insurance is something that’s quite annoying to buy, but it is something you will be thankful for if you ever get into an accident. At the same time, you shouldn’t be spending too much on your insurance. Let’s work out how you can save some money.
Options
Car insurance rates vary by hundreds of dollars for the same coverage depending on the insurer. Good drivers can save over $100 per month. Drivers with poor credit or have been recently in an at-fault accident can save over $200. The difference between the cheapest and most expensive insurance can be vast for the same driver. So make sure you get quotes from several companies before you decide.
Discounts
Always ask if you’re entitled to any discounts. You can get discounts for setting up automatic premium payments, driving less, vehicle-safety equipment, driving history and habits, driver training, customer loyalty, certain memberships and associations, military, government employees, good students, and more.
Safe Driving
Accidents and traffic tickets tend to drive up insurance rates. If you get a ticket and are offered the opportunity to go to traffic school to get it dismissed or to reduce the violation points on your record, you should do it. Keeping this off your record could save you hundreds of dollars.
Hike the Deductible
Increase your deductible on collision and comprehensive insurance and watch your premium fall. If you set it $1000, you could save up to 40%.
Cancel Insurance
If you’ve got an old car, you could drop the comprehensive and collision coverage on it. Calculate your annual premium and add your deductible to it. If your vehicle is worth less than that, drop that coverage because these covers only pay what the car is worth. Use the money saved to fund a new car.
Cheap to Insure
If you’re going to buy a car, check how much it costs to insure first. The vehicle you drive has a significant impact on your premium. Safer and moderately priced vehicles tend to be cheaper to insure.
Improve Credit
Insurance companies believe people with good credit file fewer claims. So, improve your credit score in order to save on your insurance premiums.
