Ideas For Cutting Car Insurance Costs

There are several ways drivers can reduce their car insurance premiums and save money every month. The following are some smart strategies to consider.

Shop Around

Shopping around for car insurance regularly can help drivers save significant money on their premiums. Insurance rates fluctuate frequently, so even if you secured a decent rate a year or two ago, there could now be better options available. Getting quotes from multiple insurers every six to 12 months enables you to capitalize on any discounts or policy changes that may benefit you financially. Beyond lower rates, regularly comparing plans allows you to adjust your coverage levels.

Perhaps you no longer need collision insurance on an older car, or you may want to increase liability limits if your assets have grown. New carriers also enter the market periodically with competitively-priced products. By routinely investigating alternatives from both existing and emerging trusted providers, drivers can find optimal mixes of rate, coverage, and customer service while minimizing unnecessary overpayment. Making car insurance shopping a routine can put hundreds of dollars per year back in your pocket.

Raise Your Deductible

The key benefit of raising your car insurance deductible is lowering your monthly or annual car insurance costs. Paying less for coverage provides financial savings you can use for other priorities. Additionally, choosing a higher deductible suggests you are comfortable taking on some risk. In the case you do file a claim down the road, you would pay the deductible amount before insurance takes over. Evaluate premium reductions at different deductible levels, then determine if increasing yours makes the most financial sense.

Limit Your Miles

Insurers ask for your estimated annual mileage since the more miles you drive, the more risk you take. Overestimating is common. If you work from home a few days a week, have cut out a long commute, or drive fewer miles than you used to, let your insurance company know. Lower mileage means lower premiums.

Enroll in Telematics

Usage-based insurance programs use a device in your vehicle to track driving behaviors like speeding and hard braking. Safe drivers can receive discounts for proving they drive safely through telematics. These programs also monitor mileage accurately.

Improve Your Credit

Most insurers use credit-based insurance scores as a factor in pricing. This is because statistics show drivers with poor credit tend to file more claims. With a score below 580, you’ll likely pay the most, while those above 780 enjoy the lowest premiums. Maintaining an exceptional credit score can save you hundreds of dollars per year on car insurance. Monitoring your score and keeping accounts in good standing makes financial sense.

Drop Optional Coverages

Assess optional coverage add-ons you don’t necessarily need, like rental reimbursement or roadside assistance through auto clubs. Eliminating unnecessary coverage is an easy path to savings.

Increase Policy Discounts

There are many common auto insurance discounts to take advantage of like bundling home and auto policies with one company, being a long-term insured driver with the same insurer, getting good student discounts, completing defensive driver courses, and installing anti-theft devices.

Researching ways to optimize insurance policies takes some effort and can provide substantial savings over time. Tracking down the best rate and coverage match requires patience initially but saves money for safer drivers down the road. With some persistence and clever self-advocacy, cutting car insurance premiums is an achievable goal.