Everyone wants to save money. And one of the best things to do is to look into ways to save money on car insurance.
While it is necessary and very much needed, car insurance is not always in line with your needs. There are many small tricks that can help you save on car insurance without compromising safety or convenience.
17 Awesome Ways To Save On Car Insurance
Here are some quick and effective ways to save on car insurance:
1. Know What You Need
If you wish to get cheaper car insurance it is important to understand what you really need. There are many different types of car insurances and special coverage that might suit your needs perfectly. On the other hand, some insurances offer things you don’t really require. This is why it’s best to take some time to review what you really want to get. The first step in saving on car insurance is to know what you truly need.
2. Increase Your Deductible
This is one of the simplest steps you can make to save on car insurance. By increasing your insurance deductible you are lowering your premium payments. This can save you money every month because you’ll be paying less. However, keep in mind that this method comes with a risk. In the case of an accident you will have to pay more of the cost of the repair. Don’t raise your deductible unless you are sure you will be able to pay in case you have to make a claim. On the other hand, this one of the quickest and most effective ways to save on car insurance so it’s worth to consider it.
3. Maintain Good Credit
Your credit directly influences your car insurance rates. In fact, credit is one of the most important factors insurers use to gauge you as a customer. Your credit shows how reliable you are and whether you are a potentially risky customer or not. The riskier you are the higher your car insurance will be. In order to lower your rate make sure to maintain good credit. This may be easier said than done but it truly helps.
4. Have a Perfect Driving Record
Similar to the above. Insurers need to gauge you as a client and determine how risky you might be as a client. A bad traffic record full of accidents and traffic tickets paints you in an unfavourable light. This automatically raises your car insurance. In order to make your car insurance cheaper it is best to have a clean driving record. This may not always be possible but do your best. For example, always try to minimize the number of violation points if you get a ticket. You might be able to do that if you take classes or driving seminars. In case you get a ticket make sure to always ask for an opportunity to lower the number of your violation points. This can work wonders your car insurance. Of course, having a perfect driving record is a great way to get the lowest insurance rates.
5. Know How to Find Cheapest Car Insurance
In order to get cheap car insurance you need to know how to shop for one. This is not something you can do by simply taking the first offer you see. If you really want to save money you need to know how to find the cheapest car insurance, or at least affordable one. It is important to shop for auto insurance at least once per year. Make sure to visit different providers and carefully compare their quotes. This may seem simple but many people don’t do it. Why? It is time-consuming and requires some effort. Don’t be lazy! Shop carefully so you can find the best deal you can get.
6. Know What You Don’t Need
Similar to #1 and equally important. Just like you must know what you need when it comes to car insurance you also must know what you don’t need. This goes for the existing insurance, too. Gauge your needs and simply drop everything you don’t really need. For example, many careful drivers might be able to drop collision insurance or some other coverage.
7. Get a Car with Low Insurance Rates
One of the best ways to save on car insurance is to get a car that is cheap to insure. Not all models come with the same insurance rates. If you wish to save, simply go after models that are known for low insurance rates. There are many safe cars you can buy and get very affordable insurance rates. If you are thinking about buying a new car, make sure to think about its insurance rates. This can help you make an informed decision for car purchase.
8. Consolidate Accounts
This one is really simple: many places give you discounts by simply consolidating your accounts for different types of insurances. Life insurance, homeowner insurance, car insurance and so on – if you buy them all at the same insurance company chances are that you will get a special discount. Always remember to ask about this opportunity when discussing insurance with your agent.
9. Pay the Entire Premium
Paying the lump sum is much cheaper than monthly payments in the long run. Of course, you may not be able to pay your entire auto insurance premium straight away, but this is worth thinking about. It does mean you have to pay more at first but you are free from monthly payments. With this method you don’t really have to think about car insurance on a regular basis. Also, paying the lump sum is cheaper than monthly payments so you are definitely saving money this way.
10. Don’t Let Your Insurance Lapse
One of the worst things you can do with your car insurance is to let it lapse. Even bad insurance is better than no insurance at all. If there is any lapse in the coverage you are operating as uninsured. This is the most expensive situation to be in. Make sure to prevent this by not letting your insurance lapse.
11. Avoid Intermediaries
It is always best to buy direct. Avoid intermediaries and always buy your car insurance from a direct dealer. This is a good money saver. Field agents and other intermediaries charge commission that is included in premium payments of your car insurance. There are no commissions if you buy your insurance from a direct dealer. Avoid all kinds of intermediaries to save money.
12. Think about Usage-Based Insurance
If you don’t drive a lot, consider usage-based insurance. This may be the best way to save money on your insurance. However, it only works if you don’t use your car much. Think about how often you drive and consider usage-based insurance as an option. This is not a method that works for everyone but those who don’t drive much can save a lot of money this way.
13. Find General Discounts
People who wonder how to get cheaper car insurance often forget about discounts. There are many car insurance discounts to choose from but you need to make some effort to find the best ones. All insurance companies offer special deals and discounts to stay competitive. Make sure to research these discounts to get the most affordable rates.
14. Get a Student Discount
Are you a student with good grades? You might be eligible for a special student discount. These car insurance discounts are typically offered to full-time students younger than 25. In some cases, even parents of great students can get discounts based on their kids’ status. The same goes for high school students: if you are doing great at school you may be eligible for fantastic student discounts.
15. Get a Specific Discount
Some car insurance discounts are offered only to people who fulfill a certain criteria. If you are not a student (see above) there might be something else you can use. Depending on the insurance company, there may be special discounts and deals for certain groups of people. You may qualify by age or by the type of a driver you are. Always make sure to ask about any specific discounts a company offers. You never know what you may find.
16. Change Your Occupation
Easier said than done but the change of career can reflect on your car insurance rates. Just like many other criteria, your occupation makes you a more or less risky customer. Insurers will gauge your occupation and adjust car insurance based on it. Having a good and well-paying job is not the trick here. Certain occupations are considered to be riskier in that they produce more nervous drivers. High-stress jobs, for example, are seen as risky and will increase your car insurance. Relatively stress-free jobs will make for lower insurance rates. Of course, you can’t change your career just because of car insurance but keep in mind that certain occupations do get you lower insurance rates. If you are thinking of changing jobs this may be another factor at play.
17. Lower Insurance on Older Cars
One of the most important things to remember about car insurance is that it has to be in line with your car. If your car is very old and not worth much anymore if doesn’t make sense to pay high insurance on it. Always gauge the car’s worth and your insurance rates. Older cars and cars that are nor worth much need to have lower insurance, so make sure to drop everything excessive (for example, collision or comprehensive coverage). It is just not worth to pay all of it on an older car.