Auto insurance can be expensive. Especially for drivers who are young or who have had accidents in the past. Fortunately, there are several methods that every driver can use to save money on car insurance. Here are five cost-saving tips each driver should keep in mind:
1. Shop around for the best rates. When shopping for auto insurance, don’t simply accept the first quote you get. It pays to compare multiple providers and make sure you’re getting the best deal. Ask friends and family for recommendations, or use the internet to get free quotes.
2. Check for discounts. Most insurance companies offer discounts for certain drivers. You may be eligible for a lower rate if your car has certain safety features, you’re an experienced driver or you’ve taken a defensive driving class. Ask your insurer about discounts which could be applied to your policy.
3. Take a higher deductible. The deductible is the amount you pay before your insurance pays the rest. Raising your deductible from $500 to $1000 will significantly lower your monthly premiums. Just make sure you have the extra cash available should an accident happen.
4. Drive less. If you live close to your work or other destinations, try taking public transportation, walking or biking. Having a lower annual mileage can reduce the cost of your insurance premiums.
5. Bundle your policies. You can save money by combining your auto insurance policy with one for your home or renter’s insurance. By buying multiple policies from the same insurer you could earn discount of up to 15%.
In addition to these cost-saving tips, here are several more ways drivers can find the best rate and save money on their auto insurance:
1. Leverage technology. Many insurance companies are now using technology to track driving habits, such as distance traveled, to determine eligibility for discounts. If you’re a low-risk driver, your insurer may offer to reduce your rates in exchange for you installing an app on your phone to track your driving.
2. Pay annually. Insurance companies often charge an additional fee for monthly payments. If you can afford it, always opt to pay for your policy in full. This way, you’ll save money without paying every month.
3. File fewer claims. Filing a claim when youre in a minor accident or have minor damage may cost you more in the long run. Your rates could increase by up to 50% or more if you file too many claims. So, try to repair minor damage without filing a claim to avoid paying additional premiums.
4. Upgrade your vehicle. If you haven’t already, upgrade to a car with an excellent safety rating. This not only helps you avoid additional damage resulting from collisions, but it also makes you eligible for discounts.
5. Review your policy annually. With the rapid changes in the insurance industry, it pays to review your policy on a regular basis. If you find a better deal elsewhere, don’t be afraid to switch.
In addition, here are several more tips every driver can consider when looking to save money on their auto insurance:
1. Take advantage of group discounts. Many employers, alumni associations or other organizations offer group discounts on auto insurance policies. If you know of any, ask your insurer about additional savings.
2. Go for a higher liability limit. Increasing your liability limit from the state minimum may be more expensive upfront, but it can end up saving you money in the long run. This ensures you’re covered should the worst happen.
3. Become a better driver. Insurance companies are well aware of drivers records. So, if you want to prove youre a safe driver, enroll in a defensive driving course. This can also help lower your rates.
4. Ask about named driver discounts. Insurers offer discounts to drivers who add another named driver, such as a parent or a partner, to their policy.
5. Dont only focus on price. It’s important to look at all the details of a policy before signing up. Make sure you are comparing apples to apples, and not just the premiums. For example, some insurance companies may offer a low premium, but with limited coverage.
These are just a few of the cost-saving tips every driver should consider when purchasing auto insurance. In addition, drivers can also look for insurance companies that focus on customer service and have a good reputation. Finally, never hesitate to ask questions, or negotiate for better terms. With these tips in mind, every driver can find an affordable automobile insurance policy to meet their needs.