According to the Insurance Research Council, more than 85 percent of U.S. drivers have some form of car insurance. It’s a legal requirement in almost every state. But what if you’re a new car owner or if you’ve let your previous policy lapse? Here’s what YOU need to know about saving on your auto insurance premiums today:
Tip #1: Take Advantage of Company Discounts
As insurance companies struggle to attract new customers, they’re offering more and more incentives for anyone willing to take them. For example, Nationwide is willing to cut costs by 10 percent for drivers aged 55 and older who complete a defensive driving course. Look for these deals within every company, because you might just be surprised at the ways you can save. I also recently wrote about the Allstate Drivewise program as well, which gives discounts to customers willing to put a monitoring device in their car.
Tip #2: Find The Right Insurance For Your Age Group
Teens are uniformly considered high-risk drivers, so if you’re a young person behind the wheel, your premium will be higher than average. There’s no getting around that. You might find, however, that some companies are more forgiving than others, so make sure to shop around for the lowest quotes for your specific age group.
Tip #3: Use Your Car Less
It may sound counterproductive, but you’ll actually save on car insurance if you take the bus more often. That’s because insurance companies will ask you how much and how far you drive during a regular week, and the lower those numbers are, the less you’re statistically likely to have an accident.
Tip #4: Improve Your Credit Score
Even taking into account age, gender and other economic factors, a bad credit score can massively swell your car insurance rates. InsuranceQuotes.com reports that poor credit scores can inflate your premiums as much as 91 percent, more than many other risk factors combined. If you want better rates, you’ll need to improve your credit first.
Tip #5: Stop Paying For Unnecessary Coverage
If you’re driving an old clunker that will turn into scrap metal in the event of an accident, what’s the point of paying hundreds of dollars in collision coverage every month? You won’t be repairing it anyway. Take a close look at your insurance policy and determine whether you have more coverage than you need.
Tip #6: Raise Your Deductible
The higher your deductible, the lower your monthly premiums. A higher deductible does mean paying more if you wind up in a pile-up, but you’ll come ahead if you rarely use your insurance.
Tip #7: Don’t Be Afraid of Switching Plans
If you’re unhappy with your car insurance company, or if they’re increasing fees and decreasing coverage, you shouldn’t feel like you have no say in the matter. You’re free to take your business elsewhere as soon as your policy expires. Don’t stick with a company you don’t trust just because they’re familiar.
These are just a few tips for saving on car insurance. You may not have a choice about obtaining it, but that doesn’t mean you can’t make smart and informed decisions within the limits of the law. Good luck!
What are your favorite ways to save on auto insurance?