Car insurance is more than just a legal requirement; it’s an expensive expense you want to lower as much as possible. Thankfully, you can do so in many ways without making any sacrifices in coverage.
Bundling policies, increasing your deductible, or even removing coverage you don’t need can be great options for saving on your premium.
Bundling
Bundling your car and home insurance like https://carinsurancecheap.net/ can save you money on premiums, mainly if the insurer provides an automatic discount. However, it’s essential to consider that there may be better choices than bundling for all drivers.
If your credit history is poor, you’re considered a high-risk driver, or you have a luxury vehicle, keeping your car and home policies separate may be better. Additionally, if you’re considering bundling, it’s a good idea to shop around first to ensure the provider offers the best deal.
Some people also prefer a single deductible they’d have to pay in case of a claim. This is especially true if they drive in an area known for natural disasters or have made multiple claims on their auto policy. Likewise, many people find it easier to manage their policies through one website or app rather than several different ones.
Increasing Your Deductible
While increasing your deductible can result in lower premiums, it is crucial to evaluate the potential risks carefully. Raising your deductible means you’ll be responsible for more of the cost if you need to file a claim, and that’s something to consider when deciding whether to make the switch.
As the graphs above demonstrate, bumping our sample driver’s deductible from $50 to $500 would cut his comprehensive and collision coverage costs by about 29% yearly ($776 to $554). However, it will take 3.5 years before those savings outweigh the increased financial responsibility he would incur after a claim. Bumping your deductible could be good if you have enough financial cushion to shoulder the additional expense. Otherwise, you’ll be better off sticking with a lower deductible to save on your premiums.
Removing Coverage You Don’t Need
You may be paying for coverage you don’t need, like rental car reimbursement or roadside assistance. If you’re not using these services, consider removing them from your policy to lower your rate. If you comply with state requirements and lender/lessor rules, you can drop collision and comprehensive coverage on older vehicles.
Lowering your deductible can increase your premiums, but be sure you can afford a higher out-of-pocket cost if you file a claim.
Other things affecting your rates include your area, credit history, and how often you drive. It’s a good idea to shop around every 6-12 months when your policy is up for renewal. Using the tips above and comparing prices from multiple insurers can help you find a great deal on car insurance without sacrificing your needed coverage.
Shopping Around
If you’re working from home, are a stay-at-home parent, or have other circumstances that make your driving habits more lenient, shopping around could help. Consumer Reports say certain factors could help you get lower insurance rates. For instance, if you can find an insurance company that offers low mileage discounts for safe driving, you can save some money. Improving your credit score or removing some coverage from your policy could also lead to cost savings. However, this should only be done in conjunction with a professional.
If you’re a good driver, most insurance companies will ask questions about your lifestyle and driving habits to determine the appropriate premium for your vehicle. Be wary of any meager quoted rates, and always compare apples-to-apples when comparing quotes. Shopping around can also help you discover errors in your policy or coverage limits that exceed what’s needed. You can then fix these issues before they cause financial problems. By staying informed and shopping around, you can easily save on car insurance without losing your needed coverage.
