Chances are, you’re paying too much for car insurance. In fact, the average driver overpays by $368 every year! But there’s good news: there are a few simple habits you can change that will lead to big savings on your car insurance premiums. Keep reading to learn more.
1. Drive Less
The less you drive, the lower your chances of getting into an accident. And since your premium is based partially on how much of a risk you are to insure, driving less can lead to big savings. If you can’t cut down on your overall mileage, try driving during off-peak hours when there are fewer cars on the road. You may also be able to get a discount just for signing up for a telematics program that tracks your driving habits so that you can get cheap full coverage insurance.
2. Shop Around
Don’t just go with the first car insurance quote you receive. Get quotes from at least three different companies so you can compare rates. Remember, the cheapest company isn’t always the best company. Make sure you’re getting the coverage you need at a price you’re comfortable with before making a decision.
When it comes to car insurance, it pays to shop around. There are a number of factors to consider when choosing an insurer, and different companies will offer different rates.
The best way to find the right insurer is to get quotes from a few different companies and compare their offerings. It’s also important to read the fine print before signing up for a policy. Make sure you understand the coverage and any exclusions or limitations.
Once you’ve found an insurer that you’re happy with, be sure to read over your policy regularly and update your coverage as needed. By doing your research, you can ensure that you’re getting the best possible value for your car insurance.
3. Raise Your Deductible
A deductible is the amount of money you have to pay out-of-pocket before your insurance company starts covering claims. Raising your deductible from $500 to $1000 can save you up to 30% on your premium—but make sure you have enough cash saved up to cover the higher deductible in case of an accident.
When considering whether or not to raise your deductible, it’s important to weigh the pros and cons carefully. On the one hand, a higher deductible can mean lower premiums. This can be especially helpful if you’re on a tight budget.
On the other hand, a higher deductible also means that you’ll have to pay more out of pocket if you need to make a claim. So, if you regularly have to make small claims, raising your deductible may not be the best option for you. Ultimately, the decision of whether or not to raise your deductible is a personal one that depends on your individual circumstances.
4. Don’t File Small Claims
Filing multiple small claims will cause your rates to go up, even if you aren’t at fault. If the damage is less than your deductible, it’s usually not worth it to file a claim—you’ll end up paying more in the long run. Consider fixing minor damage yourself or taking advantage of a mobile repair service instead.
5. Drive an Older Car
Driving a newer car comes with higher premiums because repairs tend to be more expensive and they’re more likely to be stolen. If your car is more than 10 years old, it might be time to start shopping for something new—just make sure it’s nothing too flashy that will attract thieves!
Alternatively, dropping collision and comprehensive coverage on an older car can also lead to significant savings without leaving you completely unprotected.
6. Pay Annually
If you have the cash available, paying for your policy all at once will usually save you some money compared to making monthly payments—some companies will give you a discount of up to 5% just for doing this. If you can’t swing it all at once, consider setting up automatic payments from your checking account so you never have to worry about missing (and incurring a late fee for) a payment again.
7. Bundle Up
Last but not least, one of the easiest ways to save money on car insurance is by bundling it with other types of insurance from the same company—homeowners insurance, renters insurance, etc.—into one convenient package. Not only will this save you time and hassle by dealing with just one insurer, but most companies offer sizable discounts for bundling policies together. In some cases, those discounts can be as high as 20%!
There’s no need to overpay for car insurance! By following these simple tips and changing some habits, you can easily save hundreds of dollars every year on your premiums without sacrificing coverage or peace of mind. So what are you waiting for? Start saving today!