Car insurance can sure be expensive, but driving around without it can be even worse. If you find yourself getting pulled over by the highway patrol then you could get yourself a ticket costing up to $760! That’s more than the yearly price of some insurance. Well, that’s the high end for California, other states are a bit more lenient, but still it comes as no surprise that people are trying to figure out ways to save money on car insurance. That’s why we compiled this list.
Related article: How to Save Money On Gas
1. One of the Easiest Ways To Save Money on Car Insurance is to Compare Rates
You probably already know this one, but it’s still worth mentioning. High end insurance companies can charge over twice the price of economy ones. The cheaper variety are usually a bit sluggish when it comes to filing a claim, though that should be expected.
How much can you save? Well that depends on what you’re paying and your history. If you have a couple of traffic tickets and have been with the same company for 10 or more years you might not be able to find a better rate. On the other hand, if you have a clean driving record and haven’t been with your insurer very long, then chances are you can knock at least 15% off your current premiums. So if you are paying something like 500 dollars a year, then that would cut about 75 bucks off the total.
The only real downside to switching companies is that you are likely going to have to put down a deposit up front. This can range from 70 to 200 dollars, so even if you are saving money in the long run, it can cost you right at the beginning.
2. Reduce Coverage
If you really need to save money, and aren’t averse to a little more risk, then consider reducing your coverage. Getting rid of theft, new car replacement, and removing people from your policy can cut your costs by at least a hundred dollars.
However, it’s important to note that if you are still making payments on a car, then having insurance which covers these is required. So to pull this off you might have to sell your ride and pick up a used one that’s paid in full.
3. Improve Your Credit
This may not seem like one of the ways to save money on car insurace, but many companies take your credit score into consideration when setting your premiums. If you find yourself in the unlucky position of having bad credit, then you may need to learn how to build your credit score. Each company varies on how much they weight your premium with this factor, so it’s hard to give an estimate for the amount you could save. You can always call your current provider and ask them though.
4. Raise Your Deductable
If you really need to save and consider yourself a safe driver, then raising your deductable might be a good option. Increasing this means that more damage is require before your carrier pays out for damages, but raising your deductable from $500 to $1000 can save you 9% on average.
I must warn you though, if you do raise this and you aren’t that good of a driver, you could end up paying for a fender bender all by yourself. So make sure you weigh your options here carefully. But what you can do is save the money that you would otherwise be spending on that insurance, until you reach the price of your deductable. That way if something does happen you’re still covered.
5. Bundle Your Insurance
If your insurance provider offers bundle deals, and you have a separate company for home or life insurance, then you can probably get a great deal by bundling them all under the same insurer. This is a common practice which raises profits for agencies, so they are usually more than willing to give you a good discount.
Prices range from 10% to 20% depending on your state and which company you are getting coverage with. And as a bonus you’ll be saving money on your other insurance as well. This article show whether a car and renters insurance bundle may be right for you.
6. Use Low Mileage Discounts
If you drive less than 15,000 miles a year then you may be eligible for a low-mileage discount. The range and discount vary from company to company though. Still, it’s worth looking into you don’t use your car much. There are also pay as you go plans which can reduce you payments by up to 50% So this is potentially one of the best ways to save money on car insurance.
7. Look for Group Insurance
If you are an alumni or even just work for an employer who has set up a group policy, then you may be able to cash in on their network. This one is a little trickier to track down as it’s not something you go to your insurance agency about. You need to route through your professional network and see if any organization that you are connected with has set something like this up.
8. If You Have a Traffic Ticket, Go to Traffic School
If you have had a ticket recently, then you are probably aware of the spike in your premiums. It’s not the end of the world though. Going to traffic school can return your premiums to their normal price. Of course this only applies if the violation is very recent. If you wait too long then you are going to have to wait for the ticket to drop off you record naturally.
9. Keep an Eye Out for Other Discounts
There are tons of other discounts out there you can take advantage of. Make sure to ask about these if they apply to you:
- Safe driver
- Good student – Good grades will get you better prices.
- Low Income
- Home owner
- Defensive driver course
- Anti-lock brakes
- Safety passive restraint and airbag
- Paid in full
- New Car – 3 or less years old
- Customer loyalty
- Auto-pay – Companies will reduce premiums if you sign up for automatic payments
- Emergency roadside assistance
- Students away from home – for parents whose children are students and live greater than 100 miles away.
If you take the time check, getting these discounts are some of the easiest ways to save money on car insurance, however be aware that insurers that don’t offer these discounts may still have a better rate than ones who do. So keep that in mind.
Check out this article if you are still wonder How to Save Money.