Car insurance costs can be a huge strain on household finances, but there are a few ways you can keep the costs down.
Here are 15 simple ways to save money on your car insurance.
1. Pay annually, not monthly
While this can be a huge chunk out of your finances, paying annually is always cheaper than paying monthly. You could save hundreds of dollars!
If you can’t pay annually right now, plan to do it next time your insurance is up for renewal. Between now and then, try to save a little each month so you’re ready for next time.
2. Increase your deductibles
This is the amount you’re willing to pay before insurance kicks in and covers it. The more you’re willing to pay, the cheaper your insurance will be.
Just be sure you can cover this excess should you get into an accident or need a major repair.
3. Choose additional drivers carefully
Sometimes additional drivers on your insurance can increase or decrease your premium. Before putting the usual names on your plan, get a quote without them and compare the difference.
4. Avoid modifications
Modifying your vehicle might seem like a lot of fun, but it’s a common mistake people overlook. Before you do it, consider the effect on your insurance. In some cases, your insurance quotes may jump up if you tell them that the car has been modified.
5. Shop around
One of the simplest things you can do when purchasing car insurance is to just shop around for the best deal. Many people will just let their existing insurer pick up the next year without a second thought.
However, you could save a great deal of money by shopping around different providers to find the best deal possible.
6. Use mass transport routes to keep mileage down
One way to keep your insurance down is to reduce your mileage. However, simply not driving isn’t really an option for most, especially if you must commute to work.
One way around this is to always opt for mass transport routes. That way, you can reduce the number of miles you add on to your vehicle each day.
7. Choose your vehicle carefully
Your choice of vehicle has a huge effect on your insurance price. So, before going for that fun, sporty car, consider a more practical vehicle that’s more in line with your budget.
Always check insurance quotes before you buy a new car to get an idea of how much you’ll need to pay so there are no nasty surprises.
8. Work on your credit rating
When you pull insurance quotes, one of the things they look at is your credit rating. If yours isn’t the best, spend some time working out ways to improve it. Try to clear debts faster, look at your credit utilization, and check your credit reports for any errors.
9. Install anti-theft features
Another way to bring the cost of your insurance down is to install anti-theft features or purchase a car that has them built in. By doing this, your vehicle is at much less risk of theft and your insurance quote should reflect that.
10. Get black box insurance
Getting a black box (car device or app that links to a GPS device that measures and records vehicle speed, location, distance traveled, driving frequency, and time of day the car is in motion) installed may seem like an inconvenience, but it can be a great way to save money on your insurance. The other benefit is that it makes you more conscious of how you’re driving. Getting black box car insurance or telematics insurance can reduce the risk of accidents or speeding tickets.
11. Limit your coverage
To keep your insurance down, look at all the coverage options you want and take out those you don’t really need. Extras might be nice to have, but if budget is tight, perhaps you can overlook them.
However, if you’re going to make cutbacks on your coverage, try to ensure you have some money saved back in an emergency fund for repairs or accidents.
12. Look for specialist discounts
In some cases, you could be eligible for an insurance discount. For example, some providers offer military discounts for anyone who’s served. Your place of work may also receive specialist treatment from certain insurance providers.
13. Consider dropping unnecessary coverage
Being fully covered is usually a good thing. However, in some cases, it doesn’t make sense.
For example, if your car’s only worth a few thousand dollars, getting collision coverage may not make much sense. It may not be worth paying an extra few hundred dollars if your car isn’t worth more than that to begin with.
14. Consider location when planning a move
Moving houses to get cheaper insurance may be a bit extreme, but if you’re planning a move, consider your car insurance. Some areas will be cheaper than others. So, if you’re shopping around for a new home to buy or rent, make car insurance one of your considerations.
15. Take a defensive driving course
To further drop your insurance, one thing you could do is take a defensive driving course. This makes you appear as less of a risk by insurance companies, and you could receive some more favorable quotes as a result.
While no one likes to pay for car insurance, following some of the above tips should help you keep the costs down to a more manageable level. Always be sure to shop around for insurance and don’t just stick with the same one each year.