You can rely on the objectivity of our well-rounded and unbiased financial guidance. It’s possible that we’ll be compensated by the issuers of some of the products mentioned in this article. The author’s views are his or her own. Unless otherwise stated, this content was not provided, reviewed, approved, or endorsed by any advertiser.
I witnessed a car accident last week. I was driving to work on a two-lane road when I heard the car in the other lane lay on the horn after passing me. I saw the car slam into an SUV that had pulled out in front of it in my rearview mirror. The good news is that no one was hurt, but the incident does provide an excellent opportunity to consider ways to reduce the cost of auto insurance for everyone.
The cost of auto insurance cannot be avoided by anyone who owns a vehicle. We don’t like paying for car insurance, whether it’s paid annually, biannually, or monthly. Fortunately, there are a number of ways in which you can lower the cost of car insurance.
Become a Safe Motorist
Insurance premiums can be reduced if you drive safely. Having a clean driving record is the simplest and most effective way to lower your car insurance costs. Consequently, it is imperative that you exercise caution while driving and adhere to the posted speed limit. A few reminders to keep in mind every day:
When driving, avoid using your cell phone, sending text messages, or eating hard-to-handle foods like tacos and sub sandwiches. In addition, driving while using a GPS system is dangerous. In addition, keep in mind that your children are paying attention to everything you do. Texting while driving is a no-no for a 16-year-old. When it comes to driving the car, they’ll look to you for guidance. (I know I’m preaching to the choir here, but) if you text, they’ll text back.
Keep to the posted speed limit: Speeding tickets add points to your driving record, which can lead to a rise in your insurance premiums as a result.
In residential areas, construction zones, and school zones, exercise extra caution: As a result, the penalties for moving violations are higher in these areas.
Maintain a defensive driving stance: Always keep an eye on the traffic in front and behind you. Always go with the safest course of action when you’re unsure. I believe that the car that passed me yesterday could have avoided the accident. He was more concerned about not letting the SUV in front of him than he was about avoiding an accident from my perspective.
Consider your surroundings before setting out on a road trip: Prepare for your journey by studying maps. Look at the map or ask for directions when you need to.
Shop Around for the Best Deals
From one insurance company to the next, the cost of car insurance will vary. When looking for the lowest rates, you should get at least three quotes from three different companies. Additionally, you may want to consider shopping with insurance companies in person as well as online. Local auto insurance companies can be found by asking your coworkers, friends, and family for recommendations when doing your shopping locally. Recommendations are an excellent method for obtaining the best rates without having to spend a lot of time on the phone.
Many different insurance companies can be found online when you search for a policy on a variety of websites. Comparing auto insurance rates from a variety of insurance providers is a simple process done online.
Work a New Job
Insurance companies may offer special discounts to employees of specific companies or even entire industries. Engineers, for example, may be given a discount by a company because they have shown to be less risky as a group. If you recently started a new job, you may want to call your insurance company to inform them of the change.
Reduce the cost of insurance for older vehicles.
Collision and comprehensive coverage are no longer necessary as your vehicle ages. Generally speaking, full coverage may not be cost-effective if your car isn’t worth 8-10 times the premium. You can get an idea of your car’s market value by using a service like Kelley Blue Book or talking to a dealer or bank in your area. Each year, compare the cost of your insurance premiums to the value of your car and adjust your coverage accordingly.
You can also use interactive online calculators to figure out how much insurance you need. CarInsurance.com has an easy-to-use coverage calculator.
Buy both your home and car insurance policies from the same company if possible
Customers who insure multiple entities simultaneously may be eligible for discounted rates from some insurance companies. Insurers can save money by bundling home and car insurance policies into one policy. With the same insurance company, you may also be able to save money on other types of coverage, such as motorcycles and recreational vehicles, too. If you buy multiple insurance policies from the same company, you may be eligible for additional savings each year as a thank you for your business.
In order to find the best deal, Policygenius allows you to compare policies for both your home and your car.
Consider including your adolescent in your coverage
In the long run, having your teen on your insurance policy will save you money in the long run. Adding coverage to an existing policy is always less expensive.
Make Your Grades Count!
Mom and Dad may get a discount if your teen or college student maintains good grades. If you’re an adult returning to school, this may also be relevant.
Ship Your Student to College
If your child has to travel 100 miles each way to school and does not have a car, you may be eligible for a discount from your insurance provider. People who do not own cars are less likely to be involved in a car accident.
Things You Don’t Use Should Not Be Paid For
Make sure you aren’t paying for services that you already pay for elsewhere by reviewing your policy. As an example, you don’t need roadside assistance from your insurance company if you have Triple A on board. In addition, if you use your insurance company’s roadside assistance, your premium may rise. These kinds of services aren’t always covered by insurance.
Increase Your Deductible Amount
You could save hundreds of dollars if you’re willing to raise your deductible. Instead of putting money aside for a deductible, put it in a savings account. The key here is to plan ahead of time. Each state sets its own insurance deductibles. We have a $500 deductible because that’s the maximum allowed in our area. Raise your deductible to see if you can save money on your insurance.
Acquire a Positive Credit Rating
These days, our credit scores are becoming increasingly important. Many insurance companies use your credit score as a factor in determining your premium. The lower your insurance premiums are, the better your credit score is.
Experian Boost can help you raise your credit score if you are currently on time with your payments. In addition to helping you improve your credit score by keeping track of all your monthly payments, it’s completely free to use.
Discounts for Low-Mileage Users
Ask for a low mileage discount if you rarely drive or work from home and don’t put a lot of miles on your car. If you drive less than the company considers normal, you may be eligible for a discount. Insurance premiums can be reduced if you drive a low-mileage vehicle.
Discounts for Safety Features
Special safety features like anti-theft devices or motorized seat belts may be eligible for a discount on your car insurance premium. With an alarm system or other anti-theft device, you might be eligible for a discount. Be sure to check the “Other Discounts” section for this type of discount.
Discounts for Senior Citizens
Many insurance companies offer discounts to senior citizens, you just have to ask! It pays to be older and wiser sometimes!
Make Your Payments Right Away
If you pay your insurance premiums in full up front, you may be eligible for a discount. In the event that you have paid for the entire year in advance and then decide to switch companies, the company must refund your money. If you pay the pro-rated amount, you’ll get a refund from the company.
Choosing a Car Is a Big Decision
Most of the time, we don’t give much thought to our insurance company when we go car shopping. Insurance rates, on the other hand, are affected by the make and model of the car you drive. Before making a purchase, make sure you’ve done your homework on insurance costs for the vehicle you’re considering. The cost of the car, its safety record, the likelihood of theft, and the cost of parts to repair the vehicle are some of the factors that determine the insurance cost. State Farm’s website features vehicle safety ratings.
Insurance premiums for foreign vehicles tend to be higher because of the higher repair costs associated with them. A car’s insurance rates can be lowered by a number of different safety features. Look for cars with daytime running lights, anti-theft devices, air bags, and other safety features when you’re shopping for a car. The Insurance Institute for Highway Safety has a wealth of information on vehicle safety and safety features.
Just Say “I Do”
Insuring married couples can result in a savings for some companies because they consider them to be less of a risk. If your situation changes, notify your insurance provider and request a discount.
Obtain a Bachelor’s degree
Discounts for alumni members are available from a wide range of insurance providers. See if your college or university maintains an inventory of these organizations. As a college grad, you may even be eligible for a discount.