Car insurance is one of those necessities that can start to be a real pain in the trunk. The reason is the price. Far too often car insurance costs way more than it should. Here’s a guide for effective ways to reduce your car insurance bills.
Choose a Low Insurance Car
It’s no secret that some cars have higher insurance premiums than others. If you want to bring your bills down then look for a car that incurs low insurance premium payments the next time you’re shopping for a new – or used – vehicle.
In general avoid flashy and sports car styles as these have higher accident statistics and hence higher insurance premiums. Make sure to look for cars that are full of safety features and are reliable and well-rated. You can also reach out to an insurance company and specifically ask them what cars have the lowest premiums and what safety equipment will bring down your price.¹
Price Shop
Insurance isn’t exactly the most exciting thing in the world, but if you want to save you will need to put some time into price shopping. Instead of just going with the first website you come across or the agency down the street from your apartment, spend an hour or two to scour around and find a place that offers cheaper rates and better incentives or discounts.
The good news is that the car insurance industry is highly competitive and if you put in the time to find the best insurer you can save a significant amount of money and get better coverage that still takes care of your needs.²
Look Into Group Insurance
A group insurance plan can end up saving you a big bundle of money. How it works is essentially that members of the same household can pool all their insurance together and get a major discount. Instead of paying one by one you bundle your insurance together and save big.
Group plans must co-own the car or legally live at the same residence. Keep in mind that any younger drivers like teens or people in their 20s who sign onto the group plan will hike the rate a fair bit since younger drivers incur higher premiums due to accident statistics.³
Hike up Your Deductible
This is a surefire way to bring down your premium: increase your deductible and your rates will go down. Whether you have a comprehensive or collision insurance plan, your deductible is how much has to come out of your pocket before the insurance coverage kicks in to reimburse you.
An example would be if you need $3,000 in repairs but you have a $400 deductible. This means you will get $2,600 and be responsible for $400. Changing your deductible is a great way to bring your premiums down.²
Drive Better
Driving more safely and improving your record will bring down the price of your insurance. As your driving record reflects no accidents or infractions like speeding or parking illegally you will start to have your premiums go down. Do the best you can to drive safely and within the speed limit in order to enjoy lower-priced insurance.¹
Make Sure You Are Getting Any Possible Discounts
There are many discounts available at various insurers, but if you don’t look into it you can often miss out. Veterans, government workers, retirees and homeowners are just some of those who can be entitled to additional insurance discounts in some situations. In addition, getting your bills sent to you by email and setting up automatic payment can be other ways you can also get discounts on your insurance.³
[1] https://www.moneyunder30.com/ways-to-lower-your-auto-insurance-premium
[2] https://www.nerdwallet.com/article/insurance/save-money-car-insurance
[3] https://www.credit.com/blog/10-proven-ways-to-lower-your-car-insurance/