When you plan to buy a car, you are tediously researching the car you want to lease or purchase. You soon find yourself exhausted and want to skimp out on all the research it takes. If you know to take to get a good deal for yourself on car insurance, you will know the efforts too. It can be time consuming and mentally exhausting. Though you are not driving frequently, considering the situation we all are in, To Save money on car insurance is still possible.
But, when we say it’s worth the pay off to avoid ending up paying an amount an auto insurance company asks you. Go asserting no effort to save! Fortunately, at National Resource Connect (NRC) we have a solution for you. We have created a simple list for you to consider where you can save money on car insurance when pondering into how to save on your premiums. We hope you find it useful — happy savings!
Check and Compare Car Insurance Rates
You might have had a feeling. This one would be at the top of our list…why yes, you guessed it right! It truly an crucial factor, and we hate to admit it — there’s no easy way around this one. You must do your quote comparisons if you want to save money on car insurance. But wait a minute, we have good news for you! You can check out these awesome user-friendly websites to help you compare rates. Quotza and JoinRoot are both top notch in helping to find low rates. Make sure you utilize ‘em in your efforts, dear friends!
And remember to consider a handful of companies before making your selection. Don’t just go with what you’re familiar with because it may not be the best bang for your buck to save money.
Seek Out Discount To save Money on Car Insurance
There are many discounts you may be eligible for. So make sure you do your due diligence and inquiry. Don’t forget to speak to your auto insurance companies or agents about which you may apply in particular circumstances. Saving money has a lot to do with discounts.
Also, keep in mind. Just because you may qualify for a handful of discounts with one insurer. Doesn’t mean your rate with them will be the lowest overall. So again, make sure you’re doing your research and asking all the right questions! Some discounts which might benefit you include:
- Being Accident-Free For 3+ Years
- Being Free Of Moving-Violations For 3+ Years
- Owning More Than One Car
- Taking Driver’s Ed Courses Or Defensive Driving Courses
- Having Anti Theft Or Safety Equipment
- Being A Student Studying Away From Home
- Being A Student With Good Grades
- Having Low Annual Mileage Rates
- Sticking With The Same Company
Go With A Higher Deductible- save money on car insurance
This is a great option to consider saving money on car insurance, especially if you’re a low-risk driver who has had no accidents. The reason being, since your premium will be lower. Which means if you ever were to file a claim, you’d end up paying more out of pocket. So just make sure of that in this worst-case scenario. This is something you’d be able to manage if it were to ever happen.
Let us consider the costs of collision deductibles, you could save between 15 to 40 percent. If you were to raise your deductible to between $200 – $1,000. The goal here is to go with the most comfortable and highest deductible. You can to save without putting yourself in the hole if an accident were to happen.
Keep Only The Coverage You Need
If you have an older car, you might drop your collision and/or comprehensive coverage on that vehicle. A car’s value decreases over time as the car ages. So in this case, the additional coverage of collision and/or comprehensive insurance probably isn’t worth it to continue paying for.
If you’re still paying a pretty penny on your premiums and have a high deductible for this car. Then that maybe all the more reason to reassess if this coverage is necessary. You can find out the current value of your car through Kelley’s Blue Book or an auto dealer should be able to help you with that.
Say goodbye to Gap insurance!
Another consideration to help cut your costs is to reconsider gap insurance (if you have it). If this is something you have been paying for. And now the remaining balance left to pay off your loan isn’t too hefty. Or you’re in a place where there’s positive equity on your car loan.
Then perhaps it’s time to say goodbye to that gap insurance. (which was only protecting you in the instance in which your car was stolen or totalled and you still needed to pay off your loan). So, if that isn’t a huge out-of-pocket expense for you anymore. It’s probably safe to let go of this coverage.
Comes the annual renewal time of your plan. Make sure you update all necessary information to your auto insurance provider. To ensure that you qualify for all discounts available to you in your current circumstances. Doing so will also enable you to take advantage of any promotions they might offer.
You may even want to think about switching your policy and find a new insurer. It could likely be the case that you may end up saving. If you were to make this switch every 1-2 years. Or you might mention a competitor’s price to your current insurer to see if they will either match or beat that price.
Read our guide Can I get my repossessed car back? to follow the right way.
Consider Bundling or Group Insurance
If you already have homeowner’s or renter’s insurance. Consider bundling your car insurance with the same company, or perhaps you might have multiple vehicles. In which case, you could consider a multi-policy discount.
Certain auto insurance companies offer reduced rates to drivers who go in on insurance through a group plan. Which is typically offered through various associations, professional and business networks, or one’s employer? Ask your employer to see if this is something that they offer. Or perhaps consult with any associations or groups you are involved with.
Maintain Good Credit to save money on car insurance
Often, car insurance companies use your credit score to help determine your premiums. By staying on top of your credit, reporting any errors, and maintaining a good score. You’ll be able to ensure that your premiums are on the lower-end. If you ever find yourself in a financial crisis, which is negatively impacting your credit score. Such as job loss, divorce, unforeseen medical expenses, military deployment, etc.
Make certain you report these matters to your car insurer immediately to see if an exception can be made. There are many apps at no cost to you which can help you. To track, maintain or even fix your negative points from your credit history and improve your credit score. CreditKarma is one of the top (tested and used by me)
Opt For Usage-Based Insurance Coverage
Depending on how often you drive, another way to save is through a pay-per-mile coverage policy. Which requires you to pay a steady base rate and then tax on an affordable fee for any additional miles. Beyond what the base rate covers which are done through tracking your mileage. However, if you drive a lot, this probably isn’t the policy for you. Since those additional miles can add up quickly and become costly.
To Save money on car insurance has benefits stored in for you. It will help you add on the extra charges and protect your car for uncertain situations. For car insurance all you need to do is apply the steps above. So, why not save money and have a car insurance to be ready for the future?
Subscribe to our financial blogs to learn from the best financial assistance.