Everyone wants to save money on their car insurance.
However, many people don’t realize that, with just a few simple methods, they actually can make great savings on their auto insurance policies.
Here are seven ways you should consider.
Buy a Car That’s Less Expensive to Insure
If you haven’t yet bought the car you wish to insure, consider buying a model that’s known to be cheaper to insure.
The type of vehicle you drive can affect your car insurance premium.
Typically, small cars and vehicles like minivans are less expensive to insure than flashy and costly cars.
Shop Around and Compare Quotes Online
One of the best ways of saving money on your car insurance is to shop around. In this digital day and age, it’s easier to compare quotes than ever before.
And don’t underestimate just how much you can potentially save by comparing different insurers and policies. Yearly car insurance rates can vary by hundreds of dollars.
However, comparing car insurance quotes online can often feel overwhelming.
After all, there are countless sites that make wild promises.
So, make sure you use a reputable platform specializing in cheap car insurance that genuinely makes finding the best policy for you and your budget a reality.
Go with One Company for Multiple Insurance Policies
You can often save money on your car insurance by bundling your insurance policies together.
For instance, you could take out both auto and home insurance policies with the same insurer. Alternatively, you could insure more than one car.
By comparing different car insurance companies, you can find out which ones offer multi-policy discounts.
Establish a Good Credit Score
The precise cost of your car insurance will partially be based on your circumstances.
Having a good credit history can help you to get car insurance at a lower cost because insurers use your credit information to help them determine the price of your policy.
So, to gain a lower car insurance price, ensure your credit history is solid or work towards building a good credit score.
That means paying bills on time, paying off debts, and not taking on more debts.
You should also review your credit report regularly to ensure there are no errors that are preventing you from saving money on your car insurance.
Drive Carefully and Follow the Rules of the Road
It isn’t only your credit score that can make a difference to your car insurance premiums. How safely you drive can also play a significant role.
If you’re involved in several accidents and keep racking up traffic tickets, your insurance premium is sure to be higher.
You should always drive safely anyway, but by making certain that you drive carefully and sticking to the rules of the road, you can lower the cost of your car insurance premiums.
Choose a Higher Deductible
One of the simplest ways of saving money on your car insurance is to choose a higher deductible.
By doing so, you can significantly lower your premium.
However, this option does mean needing to set enough money aside to pay the higher deductible, should you have a claim.
Consider a Usage-based Policy
Not all insurance companies offer usage-based insurance, but it’s beginning to become more common.
Usage-based insurance is ideal if you don’t drive often. It works like this. The cost of your insurance policy is based on how much you drive your car.
Some usage-based policies also take how well you drive into account. You need to install a small device in your car to get usage-based insurance.
The device transmits the relevant data to your insurance company so that it knows how often and how safely you drive.