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Ten Auto Insurance Cost-Cutters

Ten Auto Insurance Cost-Cutters

July 27, 2016
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Auto insurance is one of today’s biggest expenses. But does it really need to be expensive? The answer is “No.” For those of you looking to save some bucks each month, I’ve put together a list of things you can do so that you won’t throw all your monthly income on car insurance.

1. Take a defensive driving course

This is the first thing I did to lower my insurance bill. Most insurance companies will provide discounts to all of those who take defensive driving courses. All you need to do is ask your agent or company about the discount and then go and sign up for an accredited course.

You only stand to gain from taking such a course. Not only will you save money on insurance, but you will also learn how to keep yourself and your loved ones safe while on the road. And the course can also help reduce the number of points on your licence. But we’ll talk more about this in the next paragraph.

2. Keep a clean driving record

It’s really important to have as few accidents and moving violations as possible. Not just for your safety, but also to keep your wallet safe. The more points you get, the higher your insurance premiums. Being a careful driver can save both your life and your money.

3. Get auto insurance for all your vehicles, not just one

Insurance companies often offer discounts if you insure more than one vehicle, because they want your business. Talk to your agent. You could get a really good deal that might help you to save some money and feel safer at the same time.

The same goes if you decide to get insurance for the rest of your family. And there are even some companies that provide you with auto insurance discount if you have other policies, such as homeowner’s insurance, with them.

4. Don’t abuse driving your car

When you go to sign up for insurance, companies usually ask how much time you spend behind the wheel. If you’re the kind of person that drives everywhere, you will pay more in insurance premiums than someone who drives less. Try using mass transit every once in a while!

5. Install safety features

You can lower your annual premiums by several percent if you add anti-theft devices or extra airbags to your car. Just check with your agent to see which devices you can use.

6. Raise your deductibles

A car insurance deductible is the amount of money you have to pay toward repairs before your insurance covers the rest. A low deductible means your insurance provider will cover most or all of the cost, but they also come with higher premiums. If you choose a higher deductible, you can lower your premiums and even save more money over time, especially if you’re a careful and responsible driver.

7. Get rid of unnecessary coverage

If you have a really old car, it might make sense to drop extra expenses, such as collision coverage. But, before you make any such decision, talk to your agent about it.

8. Be careful when buying a car

A more expensive car will also come with more expensive auto insurance. If you don’t want to spend all your money on insurance, do some research before buying a car. Older models are often cheaper to insure than their more modern counterparts.

9. Improve your credit rating

You might not know this, but companies also look to your credit rating when calculating your insurance premiums. They believe that individuals with a good financial situation are also more careful drivers. It doesn’t matter if it’s true or not. In this situation, a high credit rating will help save you a lot of money.

10. Shop around

Don’t get complacent. Just because you got a good deal on your auto insurance, it doesn’t mean that there’s nothing better out there. Stay vigilant and act when you see your annual premium going up. Getting more quotes from different companies might require more legwork on your part, but it will also help you save some money.

But remember, cheaper isn’t always better. Do your research before signing anything. It will help you avoid untrustworthy companies.

 

Thanks to rising employment and cheaper gasoline, Americans are driving more today, which means they’re also getting into more accidents. The current insurance rates are rising at the fastest rate in almost 13 years and it’s likely that they’ll continue to rise. Follow these ten tips and you’ll be able to be safe and also save some of your hard earned money each  month!

 

Thomas Hookton

Thomas Hookton is a finance journalist, history buff and science fiction connoisseur. Hit him up via email.

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