Everyone is trying to save a few bucks as inflation has become unavoidable. Any amount you can shave off your monthly bills should be considered a win. When it comes to your vehicle, you never want to skimp on safety, but there are still solutions to consider if you want to save money.
For example, car insurance is very important if you are on the road, but is there a way to save some dough while insured? Of course there is! Let’s find out how!
1. Increase Deductible
Raising your deductible is the quickest way to lower monthly auto insurance costs. There are some downsides to this option. A higher deductible means that you’ll pay more out of pocket if you get into an accident. This is a classic case of betting on yourself. If you think you are a good driver, then this might be a risk you will take. But this is a viable option if you are on a tight budget.
2. Check for Discounts
Many car insurance companies offer a variety of discounts that go unused. Check your company’s website to see if there are any programs that you qualify for. Some discounts include automatic monthly payments, energy-efficient cars, active military, retired customers, and student customers. Take advantage of all of the discounts that apply to you.
3. Shop Around
No one is tying you down to a specific insurance company. You can always cancel your policy and find a rival with better deals. Get as many quotes as possible and find one that offers the coverage you want at the right price. But, remember, coverage is the most important if you ever need it. Don’t go too cheap.
4. Sign up for a Safe Driving Program
Some insurance companies, like Liberty Mutual, offer safe driving programs for their clients. These programs are little tests and training modules that prove you’re a safe driver. Companies provide these offers to everyone, but drivers with clean driving records benefit the most. Liberty Mutual claims that these programs can help save their drivers up to 30% on their premiums.
5. Keep a Safe Driving Record
This might be the most important factor in your auto insurance spending. Being safe and avoiding tickets will decrease that premium and likely lower your monthly payment. No one wants to see those red and blue lights in their rearview mirror, especially your insurance agent. Slow down and obey the traffic laws, and your wallet will thank you.
6. Explore Payment Options
If you can afford it, paying your premium in one lump sum will save you some money. Instead of paying once a month for a year, Insurance companies will gladly give you a discount if they can get all their money all at once. You also won’t have to worry about remembering to pay your bill every month; instead, just pay once or twice a year.
7. Raise Your Credit Score
In case you didn’t know, your credit score affects everything you do in life. Don’t let it be a dark cloud following you around; get help and raise it up. In most states, insurance companies will do a credit check before they insure you. They are looking for a good score because that means you are more likely to pay them.
It also shows a glimpse of you as a person. A person making the best choices is likelier to get a cheaper rate than others.
8. Update Your Mileage
How often do you drive your car? Have you recently switched to working from home? Do you walk everywhere and always keep that vehicle in the garage? If you answered yes, you could be eligible for low-mileage driving discounts. The less time you’re on the road, the less likely you are to get in an accident.
9. Update Your Current Policy
Listen, the insurance company won’t give you a discount unless you ask. Take a look at your policy. Odds are, your car is older or paid off. If that is the case, you should be able to lower your payments. An older car or a paid-off car is less expensive to insure. Tell your agent about these factors and have them re-write your policy to help you save money!
10. Check for New Cars With Low Insurance Costs
If you are in the market for a new car but don’t want to see that monthly premium skyrocket, research cars that are easy to insure. Certain vehicles are more costly to insure than others. Think of a sports car versus a minivan. Which one is more likely to get caught speeding? Insurance companies want safe cars. Some of the most reliable brands are Subaru, Honda, Toyota, and Ford.
11. Bundle Policies
Companies will offer discounts if you bundle multiple premiums into one. You can bundle your auto policy with your renter’s insurance or a partner’s car insurance to save money over time. Not only will it help you financially, but it’s easier to make just one insurance payment instead of multiple.
12. Track Your Driving
Are you willing to let your insurance company monitor your driving habits? If you are, great! Some companies can track your car with a device that plugs into your car, keeping a record of how you drive. Be careful how fast you drive, and stop at stop signs for a few seconds, or else you’ll be busted. Letting them track your driving and listen to you sing while you drive could save you up to 30%.
13. Get a Car Alarm
Installing an anti-theft device in your vehicle could land a discount on your premium. Car alarms and Lo-Jack systems are some of the easiest security features you can add to your vehicle. Liberty Mutual says these devices could lower your payments by as much as 23%.
14. Drop Unneeded Coverage
There are some options you might have signed up for that you now do not need. Features like road assistance might not be needed if you only drive in a five-mile radius. If you live close to home and are not prone to being stranded miles away, that could be a feature you can subtract from your coverage.
15. Sell Your Car
Of course, the best way to save money on car insurance is to avoid driving altogether. If you live in a city with good public transit, try it out. You can also bike or use an electric scooter. Think of all the money you could save on car insurance! You don’t even have to get rid of your car — you can list it as un-drivable and keep it for when you need it. Plus, you’ll get fresh air and exercise on your new bike.