Owning a car is expensive! If you analyze your budget, you might be surprised at the amount of money that your ride is eating up. One of the biggest costs is insurance. You can’t go without it, it is required by law. So, what can you do to cut this cost? Here are six tips that can do a lot for helping you save on your insurance bills.
Look for Better Premiums
Insurance is a complicated thing. Because of this, many people consider it too much of a hassle to shop around for the right company. Instead, they often go with the one that their parents used. If you did this, you could be missing out on a great deal. Call up the different insurance agencies in your area and ask for quotes. You can compare the quotes that you get and ask if other companies can beat or match them. This will take some work, but it could save you hundreds of dollars.
You might be thinking that switching insurance will cause you to lose out on your long-term membership benefits. This is certainly true, but your new company may be willing to offer you a competitive offer to incentivize the switch. Just remember that it is the job of insurance companies to serve you. If you’re not satisfied, you don’t need to stay.
Practice Good Driving
Poor driving is the fastest way to cause your payments to skyrocket. If you get a history of fender-benders and tickets, your insurance premium is going to increase. According to Bruscato Law, over 10% of adults and 20% of teens admit to texting while driving, which can lead to an increase in distracted driving accidents. By practicing safe driving habits, you will decrease your number of traffic violations. This will keep your insurance down. You can even get discounts with some companies by taking part in safe driver education programs.
Eliminate Coverage You Don’t Need
How long has it been since you looked at the contents of your insurance policy? Your insurance premium is a lump sum payment for a bunch of different insurances. Some of these are required by law, and some are not. Take a look at each item on your policy and consider if it is needed. For example, if you have full coverage on a very old car, you are likely paying more in insurance than the car is even worth. You would be better off saving that money. If you don’t understand what certain policies mean, talk to your insurance agent.
Change Your Car Model
According to Mercury Insurance, your car insurance premium depends partially on the model of car you drive. If your car is expensive, insurance is higher. If your car has advanced safety features, insurance is lower. If your car’s model has a history of reliability, your insurance company can afford to give you a better offer. On the other hand, if you don’t drive a reliable model, you’re going to have to pay more to insure it. Other important factors include likelihood of theft and age. The equation is a little complex, so talk to your insurance agent about what cars they would recommend purchasing.
According to PocketSense, raising your deductibles is a sure way to reduce your premiums, but it can be risky. The deductible is the amount that you are required to pay in the case of an accident before insurance steps in to help. By raising this amount, you are less of a risk to the insurance company. However, you won’t receive as much help if you get in trouble. If you are confident that you won’t get in an accident, then this is a good option.
Some companies specialize in auto insurance. Others offer other types of insurance like life, home, renter, and health insurance. Most insurance providers will give you a discount if you choose to have multiple insurance accounts with them. You may find that a company that can’t give a competitive automotive insurance quote will save you the most money when you bundle home insurance with them.
As you look for ways to save money, it’s important to remember the purpose of insurance. Some people view it as wasted money. It’s easy to think this way if you are a safe driver. But insurance is there to give you help when the unthinkable occurs. It may be worth paying extra in order to have the piece of mind that you’ll be taken care of.
Here’s another article you might find helpful: What Drivers Need To Understand About Accident Insurance