How to Save on Car Insurance

When trying to find affordable car insurance that also properly covers your vehicle, you may feel a little lost. However, there are ways that you can actually save money on your car insurance costs!

1. Compare Prices

There are many different insurers that offer a variety of rates. A great way for you save on costs is by comparing the different prices that are offered. You can either begin the search from scratch or use car insurance rate comparison tools to see a comprehensive list of side by side options. When you compare insurance plans, you also want to see which ones offer discounts. You can get many discounts that are based on your driving history, coverage choice, vehicle, lifestyle, student status, and more. Some companies may offer the option to install a safe driver tracking device that monitors your driving habits more in-depth. You can save as low as 5% or even as much as 50% depending on where you get your insurance from.

2. Drive Safe

Many people don’t realize that traffic violations, tickets, and accidents can make your monthly cost of insurance increase. That is why it is important to make sure that you drive safely. Not only will that save you money on insurance, but it can also save you money on fees and repairs as well!

3. Get Proper Coverage

While people want proper protection, they may end up overpaying on protection they don’t need. If you are a solo driver that doesn’t have other people in your car then having a full coverage family plan wouldn’t be necessary. It is also important to know that if your car is worth less than your deductible (the amount you pay out of pocket) plus the amount that you pay for annual coverage then you need to get a different plan. There are also different coverage plans that you should be aware of for your driving style. If you find yourself not driving a lot right now, then you may want to look into usage-based coverage. This coverage can help you because it’s kind of like a pay per mile program where you only cover the amount you have driven. Similar to how some insurers track your driving performance, you will install a device into your vehicle that will track how many miles you have driven in order to give your proper rates.

4. Get a Better Car

When buying another car, you want to keep in mind insurance premiums. When you get a vehicle that’s safe and not fast like a minivan then they are cheaper to insure. If you get an expensive, fancy car then you will see that translated into your monthly premium cost.

5. Increase Your Deductible

While this may hurt you if there is a big accident, you can save on your monthly cost. If you opt for a $600 deductible, then you will be paying more than if you chose a $2,400 deductible. That should be something you consider when looking at your monthly premiums.

6. Better Credit

When you have an above average or excellent credit score then you will see more opportunities for savings. Insurance companies may look at credit when determining the price that is set for consumers. This isn’t true for all states, but you should see if that is the case where you live. If you improve your credit score by keeping your credit utilization low, making payments on time, and handling your cards responsibly then you may be able to improve your credit score dramatically.