For many people, owning a car is not a luxury – it is a necessity. The same goes for car insurance. In most states it is illegal to drive without insurance, so having your car insurance policy paid and up to date is an obvious necessity. But car insurance can be expensive, and in today’s tightened economy everyone is looking for areas where they can save money. Fortunately, there are ways to save money on your car insurance and still get the coverage you need. We’ve put together seven top tips that can help drivers get the insurance they need at a price that will keep their bank account happy.
1 – Raise Your Deductible
The deductible is the price you pay out of pocket in the event of an accident, or a claim on your insurance policy. The lower your deductible, the higher your insurance premiums. Raising your deductible can help you save money on your auto insurance. This is particularly useful for those drivers with older cars whose blue book value may not warrant the added coverage.
2 – Pass on the Extra Services
Many insurance policies come bundled with added features like free towing, roadside service, and free rental cars. Eliminating these can reduce the cost of your insurance premiums, and save you a little money. However, you should weigh the value of these services against the condition of the automobile you are insuring. If your car is well maintained, you may not need towing or roadside services. That being said, these services can be helpful if your car is prone to breaking down.
3 – Look For Multi-Policy Discounts
You may be eligible for a discount if you insure both your home and your automobile with a single insurance provider. If you currently have homeowners insurance, ask your agent if there are any discounts or incentives available if you also insure your car with their company.
4 – Look for Low Mileage Discounts
If you only use your car to travel back and forth to work or school, you may be eligible for a low mileage discount. Drivers with long commutes, or sales people who are constantly on the road, typically pay more for their car insurance. The less you drive, the more you may be able to save.
5 – Keep a Clean Record
Drivers with multiple traffic violations are considered a higher risk by insurance companies, and typically pay higher premiums than a driver with a clean record. The same is true for people with poor credit scores. Keep your driving record clean, and your credit score healthy, and you may be able to reduce you auto insurance premiums.
6 – Never Pay by the Month
Many drivers make the mistake of choosing a monthly payment option as a way of managing their budgetary obligations. While it may seem less expensive at first glance, in the long run the added fees will end up costing you more. Many insurance companies also provide an added discount incentive for drivers who pay their annual premiums up front.
7 – Shop Around
All insurance companies are different, and comparison shopping can often lead to better deals. Before you renew your auto insurance, check out two or three other insurance companies and compare quotes. You may find that you can get the same level of coverage you’ve been enjoying for years, but at a greatly reduced price. In today’s economy everyone is looking for ways to save a little money. While auto insurance is a necessity, it shouldn’t have to break the bank. These tips should help every car owner find the coverage they need at a price that suits their budget.