Car insurance is one of those necessary items that you have to buy if you intend to operate a vehicle in any state. You can’t even register a vehicle without having an active policy number, and in some states you can lose your license.
Not only do you have to have car insurance, but you also have to keep the minimum coverage as per your state requirements and your financial arrangement. For example, if you are paying a finance company for your car each month, you may have to purchase full coverage insurance, which can make your monthly premium hit the roof. If you live in a state that has a high minimum coverage threshold, you won’t be able to do much about it. Fortunately, as with most things, there is a way for you to get savings. Look over this comprehensive list of savings tips to try to bring your monthly expense down. The more money you save on car insurance, the more money you can put in your pocket or piggy bank for future helpful purposes. At least one of these should work for you, and you may even find that quite a few of them help.
1. Compare Rates
Just because you have to buy car insurance doesn’t mean that it can’t be affordable for you. The insurance market is so competitive right now that you can probably find at least four or five providers in close proximity to where you live right now. Just imagine the number of insurance companies that are in your state and then the next state and country that can serve you. You can easily compare rates of these various companies and find something affordable within minutes. You can find a tool that will show you a horizontal list of the top insurance companies. The list will show you the rates as well as the overall ratings of the companies from consumers. Take your time and compare companies before you decide on a policy.
2. Compare Costs
How much is it really going to cost you to get on the road with a policy that meets minimum requirements? There are a few factors that you’ll need to weigh in before you decide. First, You have to think about whether you want to pay for your policy all at once or in monthly installments. There are a growing number of insurance companies that now charge customers extra if they opt to pay their premiums monthly instead of all at once. That’s why it’s important to compare companies and compare costs before you make a decision. You may have to pay a hefty down payment if you can’t pay for the policy at once. One company may be more affordable than another. Do not be hasty to get insurance from just anybody. You may be able to get cheaper coverage from a small local firm or a broker who isn’t partial to any particular provider.
3. Change Your Deductible
Sometimes you can save yourself money on car insurance by changing your deductible. That’s the amount that you have to pay for your repairs before your insurance company kicks in and contributes. Deductibles range from about $250 to several thousand dollars. The higher your deductible is, the lower your monthly premium will be. You can play around with a tool to see how much of a difference that change will make for you, or you can contact a reliable insurance agent and ask them what will happen if you change your deductible. Huge savings may be possible for you. In fact, the deductible change is probably where you will find your largest cost drop.
4. Buy a New Car
Insurance premiums often have a lot to do with the car your drive. The color of your car and your engine displacement can change everything for you. Insurance companies use an intricate statistical algorithm when they calculate costs, and it has a lot to do with the specific vehicle’s potential to get into an accident. Therefore, you need to be very careful in your auto choices if you want to save money. An eco-friendly family car is the best way to go if you want to get the lowest rates on car insurance. You don’t necessarily have to buy a new car as in “brand new,” but you may have to buy a different car than what you’re used to.
5. Look for Discounts
Another thing that you can do if you want to save money is look for discounts. A heap of discounts is available for you if you know how to hunt. You may be able to find some information on a company’s discounts by searching their website. If not, you can always call and talk to an agent. Examples of discounts that you may want to grab hold of are multiple vehicle discounts, safety equipment discounts and “maturity” discounts. In other words, you may be able to get a discount for being over 25 years old. You could also be eligible for discounts if you’ve taken some safe driver courses. Take the time to look for discounts because the company may not always voluntarily tell you what you can get.
6. Drive Safely
Being a safe driver is one of the easiest ways to get discounts on auto insurance. Safe driving discounts may apply after you have shown your provider that you can drive safely for at least three years. That means that you avoid accidents and do not have a heap of traffic tickets on your license. You may contact them and ask for cheaper rates if you feel as though you have met their standards. You may also want to ask about accident forgiveness when you ask for cheaper rates. That’s another perk that you may be eligible for after a few years of safe driving.
7. Update Information
The car you drive does make a difference in the insurance rates that you get, but so does the address that you have. You can see a huge jump in premiums from one state to the next and even one town to the next. It all goes back to accident and crime statistics in a certain area. For that reason, you’ll need to make sure that you update information such as your address if you move. You will see an immediate change in premium when you update information like that. Rural areas are the best because there usually aren’t enough cars on the road for a high level of incidents to occur.
8. Ask for Cheaper Rates
Finally, you need to be proactive when it comes to your auto insurance. That means asking for cheaper rates. Call your provider up and ask them directly if they will offer you cheaper rates. The agent should do everything in his or her power to honor your wishes and help you to improve the quality of your life. If the agent finds some discounts for you and makes the changes, they should go into effect immediately. You can always change your coverage later if you’re not happy with what you just did. Take the steps to get better insurance rates today. Your wallet will be glad that you did.