Car insurance costs have been on the rise lately and have been steadily creeping up in price. According to an annual survey by Consumer Reports, four out of five drivers saw their premiums increase over the last 12 months. If you’re like most people, you want to get more for your money. It’s only natural that the cost of an essential part of owning a car has kept pace with inflation! Fortunately, there are some simple ways that you can save on your car insurance costs. Here are five of our favorite tips.
- Shop Around
The first step towards saving money is figuring out what your current policy costs. Since every company calculates its base rates differently (some use age or length of time at one address while others use miles driven annually), your rates will vary from company to company. Look around for quotes on at least three different companies, and then make sure you get an idea of how much it costs to insure the same car with both liability insurance. Also, get the case details when somebody else gets hurt or their property is damaged, and comprehensive/collision coverage (for damage done to your vehicle). You can also get some insurance quotes to help you decide on the best policy.
- Raise Your Deductibles
Another way to save money on car insurance costs is by raising your deductible. Almost every car insurance policy has an amount that you must pay towards a claim before they cover everything; this is usually called the “deductible,” which usually depends upon the type of plan you have. By increasing your deductible, you can reduce the amount you pay out-of-pocket in an accident. This, in turn, will lower your monthly premiums since they aren’t paying for many repairs.
- Don’t Run Up Your Mileage
The number of miles you drive will also affect your car insurance costs. If you live close to work and only go a few miles each day, getting a “city car” might make more sense rather than something with high performance or heavy safety features that are useful on freeways but not so much around town. The fewer miles you put on your vehicle per year, the less likely you are to get into an accident – meaning that your rates will be cheaper, too! You should also remember that the most recent models of cars tend to have the best safety and fuel efficiency ratings.
You should also combine your auto and home policies. While auto insurance companies will always offer you a package deal for home and car insurance, there is no reason why you should accept it. Shop around with different companies to find out if they can offer you a better price on both policies instead of just one. By bundling your insurance together, the combined cost might increase at first since they’re offering you discounts for buying multiple plans – but those savings won’t last forever!
- Always Drive Safely
The last tip is something of a no-brainer. You probably knew this one was coming, but it does make sense to drive safely to get the best car insurance rates. Avoiding accidents and tickets will keep your premiums low, so try to abide by all laws even if you think they’re silly (not wearing a seat belt? Really?). Being responsible on the road can’t do anything but pay off in the long run. Furthermore, being a safe driver means that your car insurance company sees you as less at risk. And not only will they reward you for it, but they can also save on future premiums if you’re willing to take advantage of some good student discounts.
You can also add another driver to your policy. This tip might be the slightest “fun” way to save money on car insurance costs, but depending upon who is added to the policy, it can make sense financially. Adding another driver to your policy with an excellent driving record (not someone with lots of accidents or traffic violations) will lower your rates since you now have two cars insured together. Make sure that this person is supposed to be driving the vehicle in question more than yourself, though, since it doesn’t help you out if they’re going to drive your car around town.
- Don’t Let Your Coverage Lapse
The final option for saving money on car insurance costs is perhaps the easiest: don’t let your insurance policy lapse! If you’re temporarily unemployed or just on vacation, contact your insurer right away and ask them about suspending your coverage instead of cancelling it entirely. Most policies allow you to stop your coverage for a certain amount of time, usually at least 30 days, and will often keep your rates as if it’s been less than a year since you first bought the policy.
In conclusion, there are several options available to save money on car insurance costs. While many companies seem to be raising their rates these days, it’s important not to panic. There are always ways to get cheaper rates! Just take some time out of your day to compare plans and look around before rushing into anything. You might even want to speak with an independent agent who can help you find the best combination of price and service.
