5 Tips for Saving Money on Car Insurance

Car and Transportation • 0x views • 🕒 June 5, 2023 12:01

Discover insider tips for saving money on car insurance without sacrificing coverage.

Shop around for the best rates

One of the most significant mistakes many car owners make is sticking with the same insurance provider year after year without considering other options. Shopping for car insurance prices is easier than ever, and there are plenty of resources available online that can assist you in comparing policies and premiums. When you are looking for auto insurance, be sure to consider the coverage requirements for your state, your deductible, and the discounts that might be available. You might be surprised to find that a new insurer offers a cheaper price for a policy comparable to your current one.

Bundle your policies

Another tip for saving money on car insurance is to bundle your policies with the same insurer. Maintaining several policies with the same company not only offers convenience but also can lead to significant benefits. Most insurance companies offer discounts across a wide range of products, including homeowner's or renter's insurance, life insurance, and others. Bundling also provides peace of mind by knowing exactly where to turn to in an emergency.

Keep your driving record clean

Another way to save money on car insurance is to stay accident-free and drive safely. Insurance companies frequently offer safe driving discounts, so having no claims on your record can result in a lower premium. Conversely, one speeding ticket or accident might lead to a significant increase in your vehicle insurance costs. Taking a defensive driving course, installing a safety device in your car, or maintaining good credit can also help reduce your insurance costs.

Select higher deductibles

Choosing a higher deductible amount is another approach for saving money on car insurance. The deductible is the amount you pay toward an insurance claim, and most policies offer different options for choosing a deductible amount. If you choose to substantially increase your deductible, you can save a lot of money on your monthly premiums. However, be sure you can afford to pay the higher deductible if an accident does happen.

Eliminate coverage you don't need

The last tip for saving money on car insurance is to eliminate coverage that you do not require. While it's critical to carry the appropriate liability and collision coverage to comply with state and lender requirements, you may be paying for additional coverage that you don't need. For instance, if your car is old and clearly past its prime, collision coverage may not be necessary. By reviewing your policy and eliminating extra insurance coverage, you can save more money in the long run.

Related to 5 Tips for Saving Money on Car Insurance