Are You Paying Too Much for Car Insurance? Here are a Few Ways to Cut Costs
- Author: Jenny Wolff
- Posted: 2024-04-09
Spending money on car insurance is a necessity. You cannot take to the road without it. When you are on a budget, it is important to look at every line item of your living expenses and find ways to cut costs. Your insurance costs are a good place to start. Here are a few ways that you can potentially save money on what you spend to insure your vehicle each month.
Ask Your Insurer for a Discount
It never hurts to simply ask your insurer for a discount. Depending on the provider that you use, your agent may have some leeway in negotiating rates with you. Car insurance companies are known for offering a wide array of discounts to qualified members. Some of these potential discounts include saving through your university alumni association, perks for teachers or nurses, discounts for military members, or driving a vehicle equipped with active safety features. Students may also receive discounts for receiving good grades or for the successful completion of a driver's safety course. You never know what discounts you may be eligible to receive until you ask.
Increase Your Deductible
Increasing your deductible is one of the easiest ways to cut the monthly cost of your premium. Many consumers go with low deductibles because they want to avoid a large out of pocket cost in the event of an accident. However, it may make more financial sense to choose a higher deductible and put the saved costs on your premium toward a savings fund that you can draw on should you need to pay your deductible. These savings can really add up over time, canceling out the benefits of having a low deductible.
Shop Around for Better Rates
Savvy consumers shop around before any major purchase. This includes your choice of insurance provider. It always pays to shop around and compare prices before landing on a provider. You also may be surprised at the incentives offered by a prospective new provider to make the switch. Or your current provider may reduce your premium as a loyalty discount to encourage you to stay with them.
While this process may take some time, it will be worth it when you start seeing the savings in action. In fact, is financially prudent to review all of your insurance costs and providers once per year. At the very least, you should review your policies annually even if you are not planning on switching providers. Moving to a safer city, getting married, or graduating a teen driver are all major life changes that may translate to lower prices on your premiums.
Drive an Insurance-Friendly Vehicle
Before signing on the dotted line for a new vehicle, you will want to call your insurance provider to check into the anticipated costs to insure it. This is particularly important if you are debating between a few different makes and models. It is a proven fact that some vehicles simply cost less to insure because of a myriad of variables.
For instance, smaller vehicles are naturally less expensive to insure when compared to SUVs or pickup trucks just because of size alone. The exception is small SUVs which are often cheaper to insure than even some sedans. The bottom line is that you will want to be sure about what you are getting into for insurance premiums before making a final decision on a vehicle purchase.
Bundle All Insurance Policies
There is a good chance that your vehicle insurance is not the only insurance policy that you are paying for. Do you own multiple vehicles? Are you a homeowner or renter in need of housing insurance? Bundling all your various insurance policies together is an easy way to save on your overall insurance costs. Staying with one provider for all of your insurance needs will also help to reduce the amount of paperwork that you have to deal with on a regular basis because of the streamlined process.
Can insurance is certainly not getting any cheaper. This is why it is worth your time and effort to be intentional about saving on this necessary life expense.
