Car insurance is an essential expense, but it doesn’t need to be costly. Here are six strategies for cutting your costs on car coverage:
Make sure you’re receiving the best value for your money by comparing providers at least annually – but do it without changing insurers; switching insurers waste time and could render longevity discounts unavailable to you.
1. Bundle
Bundling insurance policies is one of the easiest and simplest ways to save money since many insurers provide discounts when you purchase multiple policies with them. Bundling auto and home policies usually yield the greatest savings; but you could also bundle renters, condo, motorcycle, or life policies as well.
Bundling insurance policies offers other advantages as well, including dealing with just one insurer for payments or claims filing purposes. But before selecting one that offers bundling discounts – which may differ by state and insurer. It’s wise to shop around before settling on one that best meets your needs.
2. Get a multi-policy discount
Numerous insurers provide discounts to customers who purchase multiple types of policies from them. While discounts vary between providers, bundle discounts such as home and auto coverage often allow customers to save on premiums while renter or life coverage bundle discounts can provide even further savings.
Bargain hunters know how to find deals when it comes to finding things like frying pans and smartphones, but many don’t take the same savvy approach when shopping for car insurance policies. Be an aggressive bargain hunter by talking with your insurer about ways to cut costs; take defensive driving courses or upgrade to safer vehicles may save money too!
3. Get a free quote
Car insurance is an essential expense, but it doesn’t need to be prohibitively costly. Take the time to research multiple insurers and obtain free quotes from each one before making your selections. When comparing policies side-by-side make sure all coverage and liability limits match up exactly.
Your vehicle and driving history can have a big impact on your rates. Consider opting out of any extras you don’t require such as rental car reimbursement or roadside assistance to save money, or driving safely and earning discounts based on actual behavior** We will walk you through this process and assist in finding an insurance policy tailored specifically to your needs.
4. Review your policy
Reviewing your insurance policy regularly can ensure you have accurate, appropriate coverage that’s up-to-date and up-to-date, saving both time and money in the form of premium savings; perhaps by lowering your deductible you find you can significantly decrease it and thus lower premium costs.
Plan to review your policies annually. A careful look is especially necessary after experiencing significant life changes such as marriage, divorce, or having children. A review could also prove invaluable when switching insurers as rates can vary dramatically between plans.
5. Don’t switch insurers
No one wants to feel duped, but changing insurance companies might not always be worth the trouble. If you are considering switching insurance providers, wait until your current policy renews to avoid a coverage gap; some insurers charge an early cancellation fee and you could also lose any discounts that have accrued over time.
Instead, work with a broker who can shop around for the best price from various insurers or consider direct writers such as Amica or NJM (both highly rated by Consumer Reports). Reducing collision and comprehensive coverage could also save money.
6. Pay your premiums in full
Most insurance providers allow customers to make monthly payments for their premiums; however, paying your entire policy upfront is almost always more cost-effective as processing payments costs the insurance provider money; hence they often reward those who cover it all at once with reduced premium rates.
Your financial savings could increase by improving or lowering your credit score, raising the deductible, choosing a more economical car, or switching to usage-based insurance. Finally, auto insurance savings could come from dropping coverage you no longer require; for instance, if your old vehicle is paid off and no longer worth much then dropping collision or comprehensive can save money.
7. Take a defensive driving course
Successful completion of a defensive driving course often entitles participants to an insurance discount of up to 10% over three years, lasting even after they complete another defensive driving course.
These courses often teach safe strategies to avoid dangerous situations on the road and may also help remove points from your record or get traffic tickets dismissed.
Your options for taking a defensive driving course vary, from in-person classes that enable drivers to pose questions to online classes that provide more convenience. Some drivers opt for in-person classes due to being able to pose more direct queries; other drivers prefer the convenience offered by online classes.
8. Drive a safer car
By driving more safely, you could save on car insurance premiums. Some insurance providers provide discounts for drivers who comply with speed limit laws, avoid tickets or accidents, and have a proven driving record.
Other factors affecting your premium:
Cities with higher crime rates generally have higher car insurance premiums. Also, consider your age and gender when purchasing insurance; younger drivers tend to get into accidents more often; men typically have higher premiums than women; your vehicle (sports or luxury cars are usually more costly), your deductible amount, and whether or not an accident will arise before making your decisions.
9. Keep a good driving record
Insurance companies recognize drivers with clean driving records as low-risk drivers, which translates to lower insurance premiums and savings on rates. Avoiding at-fault accidents and traffic violations is the cornerstone of maintaining a clean record; defensive driving courses or discounts for safe drivers may also help keep that streak clean.
Consider regularly reviewing your driving record (also referred to as an MVR) and promptly disputing any discrepancies or errors that appear. While look-back periods vary by state, they typically range from five years up to lifetimes and may impact job prospects negatively. Your MVR can be seen by prospective employers who use it when considering applicants.
