(ThyBlackMan.com) Auto insurance is something we grumble about buying, at least until we need it. Learn how to save money on car insurance with these nine practical tips.
Do you feel like you’re paying an arm and a leg for car insurance? Have you found yourself wondering how your bill could possibly be as high as it is?
If so, you’re not alone. In fact, the majority of Americans overpay for car insurance, no matter which insurance provider they’re using.
Overpaying for car insurance might be common, but that doesn’t mean it’s normal or acceptable.
If you’ve been wondering how to save money on car insurance, look no further. Listed below are nine effective tips that will help you reduce your car insurance bill in a significant way.
- Know Your Options
When you’re getting ready to purchase car insurance, you might be tempted to stick with the same insurance provider you’ve always used.
Don’t assume that they have the best rates or are the best option just because they’re familiar. Instead, shop around and consider all your insurance options before you make a decision.
This will help you ensure you’re getting the lowest rates possible. You might also find out about insurance providers with great rates that weren’t even on your radar before.
- Shop for Insurance First
If possible, shop for insurance before you purchase a car. In many cases, insurance premiums will vary (in part) based on the price of the car.
Insurance companies also take into account the cost of repairs to the car, the likelihood that someone will steal it, and its safety record. If you choose a car that insurance providers consider a safe, reliable, and affordable model, you’ll likely be able to get better insurance rates.
When you’re comparing insurance policies, use the type of car you’re considering and try out a few different options to see how the price changes.
- Choose a High-Deductible Plan
One easy way to lower your insurance costs is to choose a plan with a high deductible. High-deductible plans come with lower premiums. The catch, though, is that you have to pay more out of pocket before your insurance will kick in.
If you’re a relatively safe driver driving a reliable car, you can likely get away with a high-deductible plan. Make sure you have the money set aside to cover repairs and other issues, though, before you make this decision.
- Bundle Your Insurance
Often, insurance providers will give you a discount if you bundle your car insurance with other types of insurance, such as renter’s or homeowners’ insurance.
If you already have these other types of insurance, reach out to your provider and ask them what kind of discount they can offer you if you bundle your car insurance with them as well.
Before you agree to the bundled deal, remember to double-check those rates against rates from other insurance providers. You might find one that offers a better deal. In that case, it could benefit you to switch all your insurances over to them.
- Boost Your Credit Score
Many people don’t realize that their credit score plays a role in the cost of their car insurance. If you have a low credit score, you’ll likely end up paying more than someone with a higher score.
Before you start shopping for car insurance (or making a big purchase like a car), try to raise your credit score as much as you can. Some simple steps you can take to do this include the following:
- Correct errors on your credit report
- Pay down your debt
- Stop using your credit cards until you’ve raised your score
- Avoid applying for new cards or other loans
If possible, take these steps before you move forward with purchasing a car or switching insurance policies. It’ll be worth the wait.
- Be a Good and/or Infrequent Driver
If you have a good driving record or don’t drive very often, you may be eligible for better insurance rates. Of course, sometimes a wreck isn’t your fault at all. Finding out about a wrecked car’s fair market value can help you when dealing with an insurance claim. This is more of a long-term solution, but if you put the time in and make an effort to drive safely, it’ll pay off over time.
- Choose the Right Car
Remember, insurance providers will pay a lot of attention to the car you have when they’re determining the cost of your insurance premiums.
If you want to enjoy lower premiums, choose a car that insurers consider to be safe and reliable. You’re going to pay a lot more to insure an expensive sports car than a four-door sedan.
Look for a car that has added safety features, too. This might include things like automatic seatbelts, anti-lock brakes, and stability control.
- Protect Your Car from Theft
It’s also important to protect your car from theft. You can get a significant insurance discount if you take steps to keep your car safe.
This includes storing your car in a garage instead of a carport or driveway and having a car with an alarm system installed. Even etching the VIN number on the car’s windows can yield a discount when you work with some insurance providers.
- Ask for Discounts
Don’t be afraid to ask for discounts, too. One question you should always be asking yourself when considering aspects of a particular insurance plan is, “does it save money?” If the answer is yes, then take advantage of it.
Look for plans and providers who offer discounts for safe drivers or those who drive less than a certain number of miles each year. There are lots of other discounts that might available to you as well, such as good student discounts or military discounts.
Remember, you never know what your options are until you ask!
You Know How to Save Money on Car Insurance: What’s Next?
As you can see, there are lots of ways you can go about figuring out how to save money on car insurance.
It doesn’t matter if you’ve recently purchased a new car that you need to insure, are planning on buying a new car, or if you’re just tired of dealing with sky-high insurance bills. Either way, these tips will help you keep more money where it belongs — in your bank account.
Do you want to learn more about saving money and managing your finances? If so, be sure to visit the Money section of our site today and click here to read more about online title loans.
Staff Writer; Peter Hall
