7 best ways to save money on car insurance
Because the first steps in obtaining car insurance at an ideal price could be frustrating, the majority of people tend to ignore it once having it. That can be costing them significant sums of money annually. Your savings may vary greatly basing on your own driving record, location and vehicle, yet it can also add up to hundreds of dollars each year.
If you are looking for ways to save money on car insurance, fortunately, this article will reveal to you some effective tips for this concern.
- Promote Your Deductible
In general, when someone decides on a certain deductible amount for their car insurance, they stick with it. However, according to the Insurance Information Institute, increasing the amount that you pay for fender benders may be the best place to look upon trying to decrease your annual expenses.
Actually, it is really a gamble. An auto wreck will cost you much more this way, yet if you and other people in your car insurance policy have a safe driving history, then it is really a manner to save money for you. In case you feel threatened by the big deductible payment, then you can put your money aside. Even, you could use your savings each year as a car emergency fund to avoid unexpected situations.
- Car Pooling
If you join a car pool, you will gain lots of benefits beyond improving the environment. When you carpool with about 3 individuals, with each driving one-week shifts, chances are you could reduce the miles you drive by about 75%. As a result, you could easily save on your car insurance.
- Purchase What You Demand
The auto insurance that you need when your vehicle is brand new is usually different than what you demand later on. The initial rates, in general, are higher because you are required to obtain both collision and comprehensive coverage once you took out the car loan in order to pay for the car. Basically, comprehensive will pay for the replacement or repair of your vehicle from damage that does not result from accidents while collision will cover damage in case you are in a wreck.
- Combine Your Insurance Policies
If the company you get your car insurance is not the same as where you get your homeowners insurance / renters insurance, you might be paying more than what you should. This is called as “multilining” in the insurance industry. Hence, the advice to save money for you is to combine insurance policies with just one company, you could get some discounts and of course, save your money.
- Audit Your Own Driving
Another way to save money on car insurance is to audit your own driving. If you have changed your job recent days, or moved to another area where your office or favorite stores are much closer, then you should keep an eye on the odometer to save your money. Similar to carpooling, decreased driving mileage means decrease rates of car insurance. However, most people usually do not reach out to their car insurance agents when their driving habits or residence change. As a result, they may end up getting some unnecessarily high insurance rates.
- Use A Certain Tracking Device
When it comes to ways to save money on car insurance, using a tracking device is a good idea. You can use a small wireless device attached to your vehicle, and let the insurance company control your own driving habits, including frequent travel times, distance, and driving habits like speeding or sudden stops.
It is estimated that after the 1st year, you can save about 60%. However, at the same time, you may sacrifice privacy for those savings.
- Pay Bills
Last but not least, paying your bills will help you save money on auto insurance effectively. The reason behind this recommendation is that many car insurance companies pay their attention to your timeliness in paying bills. If you have a good credit report, then you should check with your insurance agent in order to see about potential discounts and save your money.