Five Pro Tips for Spending Less on Car Insurance
One of the many benefits of owning a vehicle is the freedom to go wherever you want any time of the day or night. There’s no waiting for a commuter train, taxi, or Uber driver. You’re free as a breeze. One thing you must have that the other modes of transportation don’t require of you is car insurance. Along with vehicle maintenance, gas, and tags, and the monthly payment if it’s being financed, car insurance is another expense car owners must plan for in their budget. The following tips may help you lower your insurance bill.
Review Your Coverage
Discuss your auto insurance coverage with your agent to determine if there are any areas that can be removed. For example, if you have access to a second vehicle, you don’t need to have rental-reimbursement coverage. If you have roadside assistance included in your insurance and you have an auto club membership such as AAA or AARP, you don’t need both. Whichever offers the better deal is the one to keep. Also, if you have a new car and roadside assistance is included in the car’s warranty, that should be all you need.
Selecting a Reputable Insurer
It may not seem like this would be a way to spend less on car insurance, but it is as some insurance providers can cost you more money overall.
While an insurer may advertise that they have low premiums, they may not come through to benefit you in a serious situation the way a top-rated insurer will. Low-rate companies may also force you to pay more for original replacement parts or increase your premiums due to an accident, costing you more money in the long run.
Check Annual Rates
It never hurts to shop around to find out what other top-rated insurance companies are offering. Like any business, insurance is competitive so there may be discounts available to you, but be sure you’re not getting less coverage than you need.
Select the Right Deductible
Select the Right Deductible
Increasing your deductible is another way of reducing your car insurance premium. For drivers who have a clean driving record and no recent accidents or no accidents, a higher deductible for collision coverage could save a significant amount.
Setting your deductible higher can save anywhere from 15 percent to 40 percent on your premium. The downside is if you have an accident after increasing your deductible, you’ll be responsible for the higher out-of-pocket costs.
Tap into Discounts
Discounts are available that can lower your insurance premium.
– Driver discounts – these include drivers who have taken a defensive driving course, senior drivers who’ve updated their skills with a refresher course, and someone new to driving who has taken a driver training class.
– Groups – some insurance providers offer discounts to those who are part of a certain profession or occupation.
– Safety – installing anti-theft safety equipment.
– Multiple Policies – you may get a discount by bundling your homeowners’ insurance with your car insurance. This also includes renter’s insurance and life insurance.
While lowering your car insurance premium can save money, it’s best to do thorough research with your current agent about ways to reduce the premium while maintaining enough coverage.