Choosing the best car insurance can be a difficult decision. How do you know where the best rates are? How often should you change insurance companies, or should you stay put? When your car insurance needs to change, do your due diligence and go on the hunt for the best deal. Here are six ways to save money on car insurance.
Every couple of years, even annually in some cases, pull out the calculator and compare your rates to other leading companies. You may find that your premium has dropped or risen in the last few years, and you may be able to get a better deal elsewhere. That said, sometimes switching car insurance can entail hidden fees, so be careful to read all the fine print.
Every time your policy needs a change – such as when you buy a new car or your teen daughter starts driving – re-evaluate your coverage needs and do a quick comparison. Your current policy might have a bundling option you can take advantage of, or you might find a better deal or better coverage elsewhere.
2) Know your needs
You’re looking for ways to save money on car insurance. This one is a biggie.
The best way to compare car insurance rates quickly and easily is to know what you have and know what you need. Make sure you’ve gathered all your information before you sit down to compare coverage plans. Things like the number of vehicles you have, the age of the drivers, and your accident history, can have a profound effect on your insurance costs.
What kind of coverage is best for you?
Limited or state minimum coverage should already be considered when you request your quote, but it never hurts to double check the requirements for your state. Next, you will need to decide if you only need liability coverage or go with full collision or comprehensive coverage.
- Liability insurance comes in threes (ex. 100/300/100). This indicates how much coverage is available for the other injured party, total injuries, and property damage.
- Collision covers damage to your vehicle if you wreck it or someone hits you.
- Comprehensive coverage is for non-accident damage such as weather or vandalism.
3) Search for discounts
Most car insurance companies offer discounts for good drivers, students, and bundling, to name a few. After you know your insurance needs, check with the providers to see what discounts they offer. You may qualify for one or more discounts depending on your situation.
Don’t be hasty in finding a good deal on car insurance. While the premium is important, you should make sure the coverage you pick meets all your insurance needs. Be sure to investigate low mileage, older car, and senior discounts as well.
While most insurance information can be found online now — and some companies function exclusively online — there is little to replace speaking to a knowledgeable human about your insurance needs. If you’re unsure what your situation requires, find a local agent and discuss your concerns.
Find someone you and your loved ones can trust, since this will likely be your point person in the event of a claim. You should feel comfortable and confident in your choice, not under pressure from an overly salesy agent. A reputable agent will be happy to discuss your options with you and help you decide on your best coverage option.
5) Choose your deductible
One of the fastest ways to save money on car insurance is to increase your deductible.
Some companies offer a higher deductible in exchange for a lower premium. This could be a good choice for you if you’re looking to save on some monthly costs. Keep in mind your deductible will have to be paid in full in the event of an accident or other damage, so don’t make this decision lightly. You want to be able to cover the costs if you do sustain some damage to your vehicle.
6) Maintain your record
If you’ve got a good driving record and credit history, you’ll be eligible for more discounts.
- Check your credit regularly, but especially before looking into a new car insurance company.
- Maintain your safe driving record and you should be eligible for lower premiums and/or more insurance options.
- Stay alert and distraction-free while driving and consider taking a defensive driving course.
- Taking public transportation can also help you save on insurance costs since the number of miles you anticipate putting on your car will affect the premium.
- Finally, some companies offer different rates based on your driving information sent to them through a device installed in your car. If you are a good driver and keep your mileage low, you may be eligible for one of these programs.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.