Keep It in the Bank: A Guide to Saving Money on Car Insurance
Car insurance is an absolute necessity for all drivers, but many people struggle to keep their monthly premiums at a manageable level. Even if you are an excellent driver with very few accidents and tickets on your record, you might still be overpaying for your auto insurance.
In addition to being a safe driver, here are a few simple ways you can reduce your premiums without sacrificing any of your coverage.
Buy a Reasonable Vehicle
It might be tempting to purchase a luxury SUV or sporty sedan, but the insurance premiums on those vehicles can be staggering. When you are ready to purchase a new vehicle, you should contact a handful of insurance providers and ask for quotes.
Depending on the type of vehicle that you buy, your insurance could end up being more expensive than your car payments.
Increase Your Deductible
Your deductible is the amount that you must pay toward medical bills and repairs before your insurance coverage kicks in. As a general rule, those who have a higher deductible are going to pay less on their monthly premiums.
That is a good option for drivers who don’t use their vehicles that often and keep their mileage relatively low every month. You might also want to ask for a higher deductible if you have a good amount of money saved in the bank.
Bundle Your Insurance Policies
Drivers who also have home insurance should be able to save money by bundling all of their plans. Some of the leading insurance providers throughout the country offer discounts to customers that combine various types of coverage.
If your current provider doesn’t offer any discounts for bundling, then you should take a look at other companies. You might even be able to bundle your car insurance with renters insurance if you don’t own a home.
Ask about Hidden Discounts
Insurance companies usually have hidden discounts for dozens of different things such as your occupation and where you park your car at night. Most providers have representatives that you can call to discuss all of those potential discounts.
You might also be able to get a hard copy of their discounts mailed directly to you. Each individual discount won’t make much of a difference, but all of them will add up over time. Ask an agency like Northeast Insurance Agency if you have questions.
Another simple way to lower your insurance premiums is to maintain a good credit score. Drivers who have better credit tend to file fewer claims, and the majority of insurance providers drop their premiums accordingly.
Category: Insurance
