Tips For Saving Money on Car Insurance

Tips For Saving Money on Car Insurance

Car insurance is one of those everyday costs that can quickly consume a large portion of your budget. That’s why it’s essential to try and save money on it, whether that means reducing your coverage or raising your deductible.

Thankfully, there are numerous methods and tips that are easy to execute. Here are a few of them:

1. Shop Around

Saving money on car insurance requires comparison shopping – either online or with a local agent. Shopping around will help you get the best price and ensure you’re not paying more than necessary.

To compare insurance rates, obtain quotes from at least three different providers. This will give you an idea of the differences in prices each company provides.

When shopping for insurance, one thing to look out for are discounts. Some companies provide lower rates if you’re a student driver or have an excellent driving record.

2. Lower Your Deductible

Deductibles are an integral part of car insurance, but you must select one that you can afford. Without payment of your deductible, any repairs to your vehicle won’t be covered by your insurer.

Drivers can reduce their deductible by shopping around and comparing quotes from different insurers. They should also make sure to set aside enough money for the deductible in case a claim occurs.

3. Drive Safely

Car insurance companies often reward drivers who maintain a clean driving record with lower premiums. State Farm, for instance, offers a safe driver discount to those who go three or more years without accidents or violations.

Some companies provide usage-based insurance, which monitors driving habits through telematics (a device plugged into your car’s dashboard). Insurers use this data to set rates and customers can save anywhere from 10% to 30% on their policies by exercising caution behind the wheel.

Other ways to save include taking mass transit, carpooling and reducing mileage. In some cases, drivers may even save money on their monthly bill if they opt for a pay-per-mile plan.

4. Get a Safe Driver Discount

One of the best ways to save money on car insurance is by getting a safe driver discount. Not only will it result in lower premiums, but if you haven’t had any accidents or moving violations recently, it could mean hundreds of dollars saved over time.

Companies differ in their requirements for receiving a safe driver discount, but most require you to have no accidents or violations within a specified time. Some even require you to complete an approved defensive driving course.

5. Install Anti-Theft Devices

Anti-theft devices are an effective way to deter car theft and earn you discounts on your auto insurance. These deterrents range from steering wheel locks and kill switches, to alarms.

Installing anti-theft devices on your vehicle is a straightforward process and can protect it from theft. Furthermore, many insurers provide discounts for installing these devices so it’s worth checking with your provider to see if you qualify.

There are two types of theft-deterrent devices: active and passive. The former are manually activated devices like door locks or steering wheel locks, while the latter are automatic systems that monitor your car for you.

6. Reduce Your Mileage

Depending on your insurance company, you may qualify for a low-mileage car insurance discount that could save you up to $86 annually.

Fortunately, there are several methods to reduce your mileage and still have a safe driving record.

Metromile and Root offer usage-based car insurance, which charges premiums based on how much you drive. They use telematics devices to monitor your driving habits and adjust your policy accordingly.

You could also look into getting a low-mileage car insurance policy with an established insurer. But always shop around to get the best price possible.

7. Ask for Discounts

Car insurance discounts can be a huge asset in terms of reducing your premiums. Some are automatically applied when you provide the correct information, while others require action from you on your part.

Many companies provide discounts to drivers who have not had any accidents or moving violations for a specific number of years. Young drivers may also qualify for discounts depending on their academic standing and completion of defensive driving courses.

These discounts may not always be prominently advertised on insurance websites, but they do exist and can save you money. They differ in amount, so speaking to your agent about which ones apply to you should help determine which ones apply.