Saving money is something that most of you strive to do, especially when it comes to car insurance. The premiums you pay every year may seem like a lot compared to the return you get on it. If you don’t get into any accidents, you will never have the need to file a claim.
This means you pay a lot for something you have not used. But, it is imperative to have some type of coverage, so the next option is to find some ways to save money, which is why you are here today.
● Driving Record – One of the best ways to keep your car insurance rates down is to drive without ever having to file a claim. Over the years, this can also help decrease your current rates. This not only applies to accidents but tickets as well. Even parking tickets can be held against you regarding automotive insurance.
● Credit Record – Anything that deals with financial transactions will judge who you are by your credit report. The higher your credit number is, the better your car insurance rates will be. The insurance carrier will also look at your credit history, which shows if you stay in one location and keep one job or if you like to jump around. The more stable you are, the better risk you are to them, which means a lower cost.
● Defensive Driving Classes – If you are in an area of the nation that offers some suitable defensive driving classes, take one. It will look good on your record, and it should give you a small discount on your insurance premiums. It shows that you are serious about safety. With the official knowledge of a recognized defensive driving certificate, the insurance carrier will see you as a low-risk driver.
● Compare Insurance Policies – You should be doing this every year, but for now, you need to go online to a comparison platform and compare auto insurance offers. The great thing about using an online company to compare offers is that they will do all the hard work for you. They will take some information and then send you offers from their partners that are willing to work with you. All you are left to do is go through them all and pick the best one for you.
● Increase Your Deductible – Hands down, the easiest way to save money on your car insurance is by increasing your deductible amount. The higher you put this number, the lower your premium costs will be. Be very careful when doing this, though, because it also means that you will have to pay more out of your pocket if you ever have to file a claim. You need to have a budget that tells you how much you have left over every paycheck, which is the highest amount you should ever set your deductible to. If you go over that, you may be in for a rough ride if something ever arises.
● Pay Your Premium Yearly – It looks better on paper if you pay small amounts for your car insurance monthly. It is easier to budget because it is a repetitive amount going out. But if you multiply your monthly payment by 12 (one year), you will see that you end up paying more because you have to pay the company to verify that you have paid up every month. Another benefit of paying yearly is that you lock in the amount you are paying for an entire year. The insurance company cannot increase your premiums until the following year.
You can save money on your car insurance in many ways. The ones above are some of the most common methods, but you can also look into discounts that your insurance carrier may offer, such as bundling all your insurance policies into one large, more extensive umbrella policy. The more money you give the carrier, the more of a discount they will provide you with.
Remember the golden rule of auto insurance: “Keep in mind that the cheapest premium may not give you the best policy.” Check the details of the offer before you look at the prices.