Car insurance is something that everyone needs to have, but it can certainly be expensive at times. If you are a teenager or if you’ve had a couple of accidents, your insurance can easily rise to over $1,500 a year! Imagine if you could save 15-20% of this cost. That would equate to a $300 savings, which is definitely worth a couple hours of work! Are you ready to save some serious money? Then let’s dive in and figure out how to save money on car insurance.
1) Find Comparative Rates
In a world with the internet and cell phones, getting a few auto insurance quotes is incredibly simple. All you have to do is hop online, enter in your zip code, your name, your vehicle information, and perhaps your prior infractions, and presto, out pops an insurance quote number. By entering the same policy stats for each quote, you can quickly see which option is the cheapest.
2) Increase Your Deductible
One of the simplest ways to save money on your car insurance is raise your deductible. Instead of having a $50 deductible and paying $1,000 a year, you can increase that deductible to $1,000 and likely only pay $700 or $800. It’s a great way to save money if you have an excellent driving record. Of course, in order to do this, you’ll want to make sure that you have at least $1,000 in the bank at all times in the event that you do get into an accident and have to cover that deductible.
3) Stop Racking Up Infractions
This is obviously easier said than done, but if you have fewer points on your record and fewer accidents, then your insurance costs will drop dramatically. I suggest that you get rid of that lead foot of yours and actually start going the speed limit. By obeying the traffic laws you won’t have to be on the lookout for police anymore, and you will likely get into fewer accidents. Get rid of those points on your record and save some cash.
4) Drive a Cheaper Vehicle
If you buy a brand new vehicle that is worth $20,000, you will most likely have full coverage on it (in fact, it might be a requirement if you are making payments or leasing). Because your vehicle is expensive, the insurance company will have to charge more to cover the potential damages.
However, if you own a car that is worth $2,500, then you can reduce the coverage of your insurance, which will save you quite a lot of money actually! Start driving a cheap car and you will certainly see the benefits.
5) Drive a Van or Jeep
There are certain vehicles that are just less expensive to insure. On a broad scale, these are Jeeps and minivans. If you want to pay less insurance for a decent vehicle, then you will want to buy one of these cars.
What are you doing to save money on auto insurance?