Auto insurance protects drivers from the financial consequences of accidents, theft, and vandalism. It’s important to find the best rate possible, whether you’re purchasing full coverage or a basic liability policy. Here are a few top strategies for cutting the cost of car insurance.
Find Multi-Vehicle and Multi-Policy Discounts
As you check rates, you may end up paying more to insure a single vehicle than if you’d insured more than one. Insurers often offer bulk rates because they want more business, and there’s nothing wrong with that!
Drivers on the same policy must live in one household and be related by marriage or blood. Unrelated people can obtain these discounts, but joint ownership is essential. Some insurers also offer discounts to those who purchase other types of coverage, including home insurance.
Pay Attention to the Road
Being a safe driver reduces insurance costs for everyone. The more attentive you are, the less likely you’ll get a ticket or be in an accident. Many insurance companies offer safety discounts that vary depending on driving history and other factors.
Become a Defensive Driver
Auto insurance companies sometimes offer discounts to those who complete defensive driving courses. In some cases, drivers can remove points from their licenses by taking an accident prevention or defensive driving course. Ask an agent about discounts before signing up for a class and be sure to choose an accredited course.
Shop Around for a Lower Rate
Consider comparing quotes and shopping around if your policy is up for renewal at a higher premium. It’s a good idea to get competitive quotes every few years, in case a lower rate is available. As you’re comparing quotes, check each insurer’s creditworthiness and financial strength.
Review Your Policy and Make Cuts When Needed
Dropping coverage can be a challenge simply because it’s impossible to predict when losses will occur. It may be sensible, however, to drop comprehensive or collision coverage on an older car that’s not in the best shape.
Raise the Deductible
Increasing the deductible—or the out-of-pocket cost paid on every claim—will lower the monthly bill. Raising the deductible may make sense for those who don’t drive much, haven’t been in an accident, or need to cut costs. It’s crucial, though, to make sure you have enough money to pay the deductible if a loss occurs.
Drive Less Every Year
Insurance companies sometimes offer discounts to those who drive less than the national average. In most cases, people who drive less than 7500 miles per year are considered low-mileage drivers, but the number depends on your location, gender, and age. An insurance agent can help you find a low-mileage policy that fits your budget and meets your needs.
Save Money and Stay on the Road
The cost of insurance is going up, but there are ways to save money every month. By following the tips in this guide, getting competitive quotes, and becoming a safer driver, you’ll cut costs without sacrificing coverage.
