Car insurance is a necessary expenditure, but how much you pay for it can vary considerably. Use the following five tips to help you save.
1. Shop around
You can often save on car insurance simply by taking the time to compare rates. Shop around to see which insurance company can offer you the best deal. Don’t choose a company just because you’ve always used it. Find out which one offers the best rates and has the best customer satisfaction.
2. Be selective about the car you buy
It pays to do a little research before you buy a car if you want to save on car insurance. Some cars are more likely to be stolen or are more expensive to repair. As a result, they’re more expensive to insure. Avoiding these models can help you save.
3. Request a higher deductible
A great way to save on car insurance is to opt for a higher deductible. The deductible is the amount you have to pay before your insurance kicks in to cover the cost of a claim. And the higher your deductible, the lower your premium. You’ll have to pay more out
of pocket if you have an accident. But, assuming you have very few claims, the savings can really add up.
4. Limit coverage on older/less expensive cars
Don’t over-insure your old clunker. Some cars are so old or so inexpensive to repair that it doesn’t make sense to pay for collision and/or comprehensive coverage on them. You can save on car insurance by just getting the minimum amount required by your state. But remember to set some money aside in case of an accident, as you’ll be on the hook to cover the cost of any necessary repairs.
5. Ask about discounts
Check to see if your insurance company offers group discount savings for membership in any organizations that you are a part of. You may also be able to get a discount on your car insurance for having anti-lock brakes, air bags or other safety features. And there are discounts for being a good student or for not having been in an accident for a certain number of years.
Be patient and do your homework. A little legwork can really pay off when trying to save on car insurance.
Compare Auto Loans in minutes.