Did you know that in 2019, 1 out of 8 drivers was not insured? If you are looking to save money – we do not recommend driving without insurance instead shop around for cheap car insurance. We have put together this short guide to share how to save money on car insurance.
Keep reading for our top tips on how to save money when buying car insurance.
1. Ask for a Discount
Asking for a discount is a simple way to get a better rate because the worst that the company can say is “no.” There are plenty of reasons that they can offer you a discount such as military services, being a senior citizen, good grades, working in certain fields, affiliations like AAA, or alumni programs from your university.
This average car insurance cost can be cut by a couple of hundred dollars every year with a discount.
2. Raise Your Deductible
In simple terms, the higher your deductible is the less your insurance premium will be. The reason is that the deductible is what you pay before the insurance pays for your incident. For example, if you have a $500 deductible and your incident costs $3,000 then the insurance company will pay $2,500 and you will pay $500.
The more you pay the less the insurance company will charge you for your premium. You can opt for a $1,000 deductible or higher to see a difference in your monthly payments.
3. Get Rid of What You Don’t Need
Sometimes there are hidden extras in your policy that you are paying for and don’t even know about. Extras such as premium coverage or GAP will make your policy go up and you might never even use those extras or truly need them.
Also, if your car is paid off you can opt to drop collision and comprehensive coverage to save some money. Keep in mind that if you finance your car, by law you have to carry collision and comprehensive insurance in most states.
4. Change Your Payment Methods
Another money saving tip is to change when and how you pay for your premium. One popular option is to pay the insurance in full instead of monthly payments. You can opt to pay for an annual premium or for 6 months at once. Most insurance companies offer a discount because they do not have to process your payments every month.
You can also choose to set up automatic payments to save some money every month. There are plenty of companies that give you a discount because they do not have to send you a monthly bill and wait for you to make the payment. Keep in mind that there is always enough money in your account to avoid accidentally causing an overdraft situation where you will end up paying more.
Now You Know How to Save Money on Car Insurance
We hope that now that you know how to save money on car insurance you can make informed decisions while you are shopping around for your own car insurance.
Did you find this article helpful? Please keep browsing the rest of this section for our latest tips and tricks about saving money.