When you get a car, you need to have car insurance. It’s important to get comprehensive coverage, but it’s also affordable. While most people care a lot about getting a good price when they first set out to get car insurance, they often don’t look any further after that. Not continually searching for good deals can cost you hundreds each year.
Many people don’t know that the cost of their auto insurance can be lowered to help you save, based on your driving record, your car, and where you are.
Increase your deductible
Insuring the amount you pay for a deductible will lower the cost of your insurance rates. Now understand that this move is certainly a way to save on costs month to month, but if you end up in a car accident, then yes, it may end up costing you more to repair the damage.
However, if you have a history of being a safe driver, give it a try and set aside some money for an emergency fund to cover unexpected car costs.
Try carpooling
There are some insurance companies that actually track mileage, so the less you drive, the cheaper your coverage will be. With these types of policies, if you drive less than 7,500 miles, you get the lowest rate, and up to 13,000 miles is the medium rate.
Change plans to what you need
It’s better for you to change plans to what you need, when you need it. Buying a new car will require different insurance compared to an older car. When you’re paying off your car loan, you’ll need comprehensive and collision coverage, but once you’ve paid it off, you’ll have many more insurance options available to you.
You could end up with more collision insurance than you need. In fact, on older cars, it’s recommended that you drop collision insurance anyway because comprehensive coverage is comparably affordable and will give you all the coverage you need.
Combine policies
If you have auto insurance and renters/homeowners insurance through different companies, you may be able to combine your policy with one company and rack up discounts.
Check for discounts
Whether you’ve changed jobs, moved to a new place, or anything else, keep track of your policy options. You may be able to get a cheaper policy in a new city or with a new job.
Check your credit
Your credit score has a small role to play in your insurance costs. So pay your bills on time and make sure you work hard to improve your credit score. While you’re at it, continually check to see if you now qualify for lower rates.
Other discounts
As a student, good grades can earn you discounts. As an adult, see if you can take a better discounted adult driver safety program. Consider avoiding a red-colored car, as these come with higher insurance rates for users compared to other colors.
