The ability to save on car insurance is one expense over which you have a lot of control. Unfortunately, many motorists aren’t getting the memo.
In fact, global spending on car insurance is expected to top $1 trillion by 2027. That’s a lot of spending on a product you may never need.
In this article, we examine five key ways you can lower your car insurance costs. Let’s begin!
1. Check Multiple Insurance Providers
Perhaps the most powerful tool you have at your disposal when it comes to saving money on car insurance is the internet. This allows you to see what multiple insurance providers are willing to offer you with a few mouse clicks.
You can either take the best offer or use the different offers as leverage. Some insurance providers are pretty rigid but others might be able to reconfigure quotes by changing a few small criteria that end up appealing to you more. At MyChoice insurance, the process will be more easier by comparing insurance quotes from top providers that will give you peace of mind and make sure you get the best deal.
2. Head Off Car Insurance Rates When Buying
If you’ve yet to purchase your car, then a great way to slash insurance rates is to run the numbers of your top choices before you make the purchase. What you’ll find is this.
Some cars are dramatically cheaper to insure than others. If you’re on the fence between a muscle car or a luxury sedan, for example, you might use the insurance rate as a deciding factor.
Traditionally, the sedan is a much safer car. Hence, better rates!
3. Raise Your Deductible
Another of the most effective ways to lower car insurance is to adjust your deductible upward. As in, the more you pay out-of-pocket in the event of an accident, the cheaper your monthly period will be.
There are definite advantages to this if you remember to put back the money you might need for that deductible if someone hits you (or vice-versa). Let’s say a $250 deductible brings with it a $200 a month insurance premium.
However, raising that to $1,000 brings the premium down by half. Now you’re able to put back $1,200 a year for the deductible.
Keep putting back the money each month anyway. After five years, you could have your $1,000 deductible set aside and an extra $5,000 in an emergency fund or investment account.
4. Bundle Car With Home
Buying home and auto insurance from the same place is another way of getting deep discounts on your rates. All the major players do this, so when comparing from one company to the next, make sure you’re doing an apples-to-apples comparison.
In other words, don’t compare your existing rate bundled to a provider’s sole car insurance quote unbundled. It’s not a true comparison.
5. Shake It Up
You can also lower insurance costs by thinking outside the box. Cut to liability insurance from collision on older cars that are paid for and worth less than ten times the monthly premium.
Improve your credit score by paying off bad debt. Go accident- and citation-free, get good grades if you’re a student, or switch to billing terms that charge based on how much you drive.
Some car insurance costs may drop if your insurer has any programs where they install a governor to monitor driving behaviors. Too intrusive? Maybe, but those of you confident in your safe driving ability can reap the rewards.
These Ways to Save On Car Insurance Can Save You Hundreds
Hopefully, we’ve given you some great ideas to save on car insurance that you can implement right away. Examine your policies, engage in safe driving behaviors, and shop around.
You’ll be glad you did. For more auto and insurance industry news, check out some of our additional posts!