5 Strategies to Save Money on Car Insurance
Good car insurance is a necessity. Premiums have to be paid but they do not have to be an expensive nuisance. Just follow the strategies below to save money on car insurance and reduce your auto premiums today.
1. Never skip comparison shopping.
Getting quotes from multiple providers is such an obvious starting point, but far too many people skip it. Some are simply too busy, too lazy, or too complacent. It is such a waste of money though! You wil be surprised to know how much premiums can vary. Identical policies can vary from $500 to over $1,000 from one company to the other. So if you want to save money, get multiple quotes!
2. Avoid the fancy cars.
The type of car you drive has a significant effect on car insurance premiums. The fancier it is, the more money goes out of your pocket. If you are still shopping for a car, estimate the cost of insurance first before making the purchase. You can also call your agent to ask for a list of the most expensive cars to insure, and stay clear off them.
3. Raise your deductible.
How much can you handle financially in case of a loss? If you can handle $1000, set your deductible at this amount. Anything lower is simply buying car insurance that you do not need. The amount you can save by raising your deductible varies. It is best to discuss with your insurance carrier. Usually, the savings are around 10% if you raise your deductible from $500 to $1,0000.
4. Combine your insurance policies.
Consider combining your car, health, life, and other policies under one provider. For starters, this can simplify your finances and save you plenty of time in dealing with multiple companies. There is also the added benefit of getting discounts for loyalty or multiple policies with one company. Depending on your provider, you can save money on premium in all your policies when you combine them.
5. Keep a good credit score.
The credit score you keep says a lot of things about you. Insurance companies use it when setting your premium. Apparently, there is a meaningful correlation between your credit score and claims history. This is why people with excellent credit pay at least $500 less in car premium compared to everyone else. Those with poor credit, on the other hand, can pay $1,500 more in annual premiums. So guard your credit to save more money on your car insurance.