Don’t Get Wrecked By Insurance Premiums: How to Save On Car Insurance

car on piles of coins

An average of 6 million car accidents occurs every year in the US. It’s no surprise with 253 million cars and trucks on the roads.

Making sure you are properly insured is a necessity. Without insurance, you may find yourself paying out big bucks after an accident. If an accident was proved to be your fault, you could not only have to pay for damages to the car(s) involved, but you may also have to pay for other damages like pain and suffering.

While you want to be properly protected, you also want to make sure that you aren’t overpaying on your insurance. There are easy things you can do to keep your premiums down. Continue reading this article to learn how to save on car insurance.

How to Save on Car Insurance and Maintain Peace of Mind

As you are looking for more info on car insurance, you may be surprised at the high premiums. Depending on the type of vehicle you have, you might be staring at premiums that rival your mortgage. Here are some things you should know to help you with this challenge.

1. Get More Than One Quote

If you take the first quote you come across, you may be paying hundreds of dollars more than you need to pay. While getting multiple quotes might seem like a no-brainer to you, it can be easy to let this part slip if the initial coverage you review seems like an alright deal.

Insurance rates can vary greatly, so getting a quote from a few different companies can potentially help you save thousands. If you don’t want to do the comparisons yourself, some companies will compare rates for you.

2. What Are You Driving?

While you can’t do anything about changing your age to get lower car insurance, you can look at the type of car you are driving. If you’re driving a Prius, you’re going to have a very different premium than you would if you were to drive a late model Mercedes Benz.

If the insurance company is afraid they will have to pay big chunks out of pocket, this will increase the premium you are paying each month. Before purchasing a vehicle, you should call and get an estimate on how much the insurance will be. You can also talk with friends that have different vehicles to see what kind of rates they are paying.

3. Consider Your Deductible

When you are budgeting for the month and looking at your high premium, you should consider raising your deductible. Having a higher deductible will lower your car insurance rates immensely. If you have no deductible, you will pay the highest car insurance rates.

4. Group Your Policies

Bundling your policies will almost always give you a discount. Speak with your specific provider to see how much those discounts are so you can stop paying a higher price simply because you have policies with multiple companies.

If you have life insurance, fire insurance, flood insurance, homeowners insurance or any other insurance, you are likely to get a nice bundle discount if you go with one provider.

5. Increase Your Credit Score

Your credit score can play into how much your insurance premiums are. Insurance companies look at how responsible you are. If your credit score is low, it can have negative effects on their trust in your capabilities.

6. Check for Any Discounts

Your insurance company may offer discounts on your premiums. Ask your insurance company for a list of things they give discounts for. Some of the common discounts you will find are:

  • Safe driver
  • Military
  • AARP
  • Accident Free

A couple of questions to your insurance company and you could save on your premiums. There are some strange discounts some carriers offer, so don’t assume there are no discounts for you: make sure you ask.

7. Pay By the Mile

Some states allow you to pay by the mile for car insurance. Pay by the mile means you’ll save money if you drive less, and you can have control over how much your insurance costs by watching how much you drive. If you drive a lot of miles because of a commute to work or you enjoy traveling a lot, the pay by mile option may not be the best option for you.

8. Reduce Your Coverage

The more coverage you have, the higher your insurance premiums will be each month. There are a few different parts that you can focus on when you want to reduce your coverage. The best way to see where you are paying the most is to look at your insurance statement.

If you are confused about your insurance statement, speak to your insurance agent and ask them to explain your coverage. You may feel you need more coverage in one area and less in another. Understanding your coverage and what it means is important before you start decreasing it.

If your coverage is higher than the value of your car, you are paying too much. You can’t be reimbursed more than the cost of your car with comprehensive or collision coverage. Lack of understanding about your coverage and the value of your car is a costly mistake.

9. Drive Safely

When you don’t have any accidents or tickets on your record, your car insurance rates are at their best. When you think about speeding off at the red light, just remember you could be putting your low car insurance premiums at risk.

If you have any challenges on your driver’s history, it can help to take driver’s education. Showing you are improving your driving skills and keeping your driving record clean going forward will help with your premiums.

Learn How to Save More Money

If you’re like us and you don’t want to pay more money than you have to, there are more things you can learn to cut down on your spending.

You’ve learned how to save on car insurance. Now, check out one of our popular articles on tax refund tips, so when tax time rolls around, you will have a happier experience.

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