When looking for car insurance, there are many things that can be done to save money. Trying to cut back on many bills and expenses is normal and should be done. Everybody is looking to save money, and one place to start can be your car insurance. Below are five ways in which you can save money on car insurance.
1. Ask Your Insurance Agent about Discounts
Sometimes the agent will not inform you or give you all the discounts that you and your family may qualify for. Be sure to research the many discounts available to car owners based on your age, car, history and credit. Some of the most popular discounts available for people in your family include:
- Students who have taken a driver’s education course
- Discounts for college students who live many miles away from home
- Students who have good grades and a good driving history
- Discounts for people over the age of 50 or are retirees
- Discounts for people in certain organizations or clubs
- Discounts for some people who combine their home insurance along with their car insurance
- Combining family cars in one insurance package discount
If your car is equipped with some of these safety features, you could get a safety discount:
- Airbags
- Security system
- Anti-lock brakes
- Automatic seat belts
Be sure to ask your agent to review your options and inform you of any discounts that you may qualify for. This is the best way in saving money on your car insurance premiums.
2. Shop around for Car Insurance Before You Buy a Car
Insurance is based on:
- Driving history
- Age
- Credit report
- Car characteristics like how valuable it is, safety features and how prone it is to be stolen.
If you are buying a new or used car, car insurance is a main concern. Newer cars will have higher insurance than older cars. There are many different car insurance companies in your city and on the Internet. Weighing out the pros and cons of each company is a good way of deciding which package is right for you. Many websites will allow you to get a quote based on your personal information as well as the car information. If you like the result, give them a call and work out a plan that is affordable and has all the features you are looking for.
Also, by raising your deductible to at least $500 this will help you save more money on your premiums in the long run. Opt out for extra coverage like auto-related deaths because they are unnecessary and will cost you more money.
3. Be a Responsible Driver
Being a safe driver is always a good thing because when you are safe, then the people around you are safe and the risks of accidents decrease. Staying out of accidents can keep your insurance low because an accident can raise your insurance rates and premium. Taking a defensive driving course can make you a better driver and can get you a discount as well. Speeding tickets and parking tickets aren’t good for you either because these could play a part in how much you pay for insurance as well.
4. Choose to Drive an Older Car
Newer cars are going to cost you more in car insurance. They may have more safety features that will get you a discount, but the final price is the price that should be the most important. Companies may give lots of discounts, but may have a higher final price than a company who may not give out as many discounts.
If you already have insurance, check the value of your car in the Kelley Blue Book to see if your collision insurance premium is more than 10% of the current value of your car. If it is, you should consider dropping it. Some car models, no matter what year, may cause you to pay a high insurance plan. Check online or with a car insurance agent to see which models fit in your budget. This could be very helpful before buying a new or used car. Since many people buy a new or used car every couple of years, staying behind will save you money in the long run.
5. Take Care of Your Credit
Car insurance companies like people who have good and stable credit because these people are considered more reliable and safe drivers. A good credit score can affect your monthly insurance payments. Checking your credit online is very easy. There are many websites that give you free access to all three of the main credit bureaus. This is very important because your credit report affects many things in your life.
- Check your credit report frequently and make sure you pay all your bills on time.
- Be sure to make sure that all accounts on your credit report are yours.
- Fraud is common and mistakes can be made.
- Any errors found on your credit report can be disputed and fixed.
These are easy things that can be done, and there is no need to be a car or insurance expert. Do not be afraid to ask around for good companies or discounts because it is your right to get the best deal on car insurance for you and your family. Asking for discounts, shopping around for cars and car insurance companies, driving safely, buying an older car and maintaining good credit are a few things that can help you get a cheaper car insurance deal for you and your family.
—
Emily is a financial writer and freelancer for a number of different consumer financial websites. When she is not writing and researching ways to save money on car insurance she can probably be found heading to the park with her 3 kids.