5 Tips to Make Car Insurance More Affordable
You might think finding cheaper car insurance is one of the great mysteries in life. Fortunately, it’s not a big secret, nor is it difficult to get car insurance discounts. Here’s how:
Ask for Discounts
Car insurance companies often have discounts available for many drivers. Sometimes, they provide discounts automatically, but other times, you have to ask for savings.
Suppose you’re married and work from home, and you drive much less than when you bought the policy. Mention the situation to the agent and ask if there is a driver discount for low usage, low mileage, or marriage.
Other discounts can include safe driver, good student, bundling policies, multiple cars on the same policy, employment by a major employer, military member, or a member of a professional or affinity organization.
It never hurts to ask for a discount. Sometimes, you may discover savings that you didn’t know about before shopping for car insurance.
Consider Your Deductible
Deductibles are the amount you’re responsible for paying before the insurance company kicks in to cover a claim. Policyholders with higher deductibles take on more financial risk than those with lower deductibles. However, the risk can pay off in the form of lower car insurance premiums.
Accepting a higher comprehensive and collision deductible can save you hundreds if you feel comfortable paying more out of pocket in case of an accident or don’t drive much. If you can’t pay your deductible after an accident, you might get into financial trouble, so be sure to set it at a reasonable amount.
Don’t Buy More Coverage Than You Need
Buying more insurance than you need doesn’t always pay off.
Think about this: Suppose you drive an older car, and comprehensive insurance and collision coverage double the premium. It might not make financial sense to insure your vehicle at that level if it isn’t worth very much. Remember that insurers only pay claims up to your car’s value today, less the deductible.
Make sure your coverage level is sensible for the age of your vehicle, your driving frequency, and your financial situation.
Update Your Policy After Major Life Changes
Significant life changes sometimes mean cheaper car insurance. For example, your rates typically go down if you get married. If you move to a new city, or even a new ZIP code, you might also qualify for cheaper car insurance rates.
Anytime you experience a significant life change, shop for auto insurance quotes to see if you qualify for cheaper premiums.
Revisit Your Quotes Often
It’s a good idea to look for cheaper car insurance quotes at least once a year. Then, when your driving record improves or old violations drop off, it can provide you an opportunity to save hundreds of dollars.