5 Ways to Pay Less for Car Insurance
Car insurance killing your budget? Don’t sweat! Insurance experts know many drivers are struggling to make ends meet, and though coverage is required to legally drive a car in the United States, it doesn’t have to kill your budget. Here are some tips to help you save!
Pay Annually or Semi-Annually
Most car insurance companies charge anywhere from $3 to $5 a month for the flexibility and convenience of paying the premium in monthly installments rather than once every six months or once a year. Paying the policy in full at the time of issuance will save you money over the long run, though it may be harder to swing budget wise for newer vehicles with comprehensive and collision coverage.
Ask About Discounts
You may qualify for discounts if you have more than one vehicle, if your vehicle has certain features, if you have a safe driving record, or if you combine your home, auto, and other types of insurance together with the same company. Be sure to ask the agent if there’s anything you qualify for. Ask each time your policy renews, or your situation changes. Just because you were not eligible for a particular discount at your last policy renewal, doesn’t mean you won’t be by the time the next time the policy is up for renewal.
Take a Safe Driving Course
Talk to your insurance company and see if they offer a discount for taking and passing a safe driving course. If so, ask for a list of classes eligible for the discount, so you can enroll in one. If you already know of safe driving courses offered in your area, ask them if their courses will help reduce your car insurance rate. You may be surprised at how much you can save.
When you’re in the market for a new or used vehicle, think about the insurance rate before you purchase it. Economy cars are not always cheaper than SUVs! Get a quote from your current insurance company. Multi-car discounts can make the car cheaper than it would be as two separate policies, but it may also be a good idea to shop around with other companies, and consider changing providers to the one who can provide you the best deal.
Avoid Aftermarket Additions
After market additions to your car, such as electronic installations, stereos, etc. may impact your car insurance rates, and not in a good way. The after market additions represent a higher risk to your insurer, which means they will charge you more. The only aftermarket addition that won’t potentially raise your rate is an anti-theft system, that will help protect your vehicle, thereby reducing your risk to the insurance company.
Opting for a policy with a higher deductible in the event of an accident is usually a good way to reduce your premium, but it clearly isn’t the only way you can save. If you have a car that’s more than 10 years old, opting for the higher deductible amount isn’t likely to make much of a dent in your premium amounts.
If you have towing coverage and/or rental car coverage, removing this coverage can also reduce your premium. You’ll be paying for the towing and rental car coverage whether you ever use or not. Putting a little aside into savings to cover those expenses if they are ever needed, will save you money compared to paying for the coverage. If you want to save money on your coverage, then talk to your insurance company. You are free to shop around to see which company offers you the best deal.