Car insurance is something you definitely need if you have a car, and are planning on driving it. Car insurance is required to protect you financially when you’re behind the wheel. Whether you have full comprehensive auto coverage, or just basic liability insurance, try to get the best deal possible.
Wondering how to get a lower car insurance rate? There are a number of strategies you may use to save on auto insurance. Once you know how much is car insurance for you, you can put some or all of these tactics to work. Here are 5 strategies you can use now to save on car insurance costs.
1. Get A Quote to Find Out What Your Rate Could Be
If it’s your first time getting car insurance, or even if you already have an existing policy, it’s good to get a new auto insurance quote. Yes, it’s possible to get an estimated car insurance quote while you’re still shopping around. Although the quote will only be an estimate, it can still provide you with a good indication of the price you’re likely to pay.
Most reputable car insurance companies will be happy to provide you with a quote by phone or online. You will need to provide some personal information like your age and where you plan to drive and park your car. The agent will also ask for details like the car’s year, make, and mileage. The whole process should take about 10 minutes or less.
2. Cut Back on Extras You May Not Need
If you drive an older car, it might be time to drop comprehensive and collision insurance. These coverages pay for damage to your vehicle. Comprehensive insurance pays if your car is stolen, or damaged by vandalism, storms, or by hitting a deer or other animals. Collision insurance pays to repair damage to your car if it crashes into another vehicle or object.
If your car is worth less than your deductible plus the amount you pay for annual coverage, then it’s time to cut them. Comprehensive and collision never pay out more than your car is worth. Figure out whether it’s worth paying for coverage that may pay you back only a small amount, if anything.
3. Change How You Pay
One of the easiest ways to lower your car insurance premium is to change how you make your payments. Most national insurance companies offer discounts if you do the following:
Get paperless statements by email
Pay a full year instead of monthly payments
Sign up for automatic payments
Drivers who take advantage of these easy-to-get car insurance discounts could save as much as 15%, depending on the company. Be advised though, some insurance companies will place a limit to how much you can save with discounts. Some will only give signup discounts on your first twelve-month or six-month bill.
4. Consider Usage-Based Insurance
If you don’t drive a lot, you should consider an insurer that offers a pay-per-mile or usage based driving program. These insurance policies base rates on how often you drive and, in some cases, how well you drive. To participate, you just install a small device in your car that transmits data to the insurance company. You score a discount for safe driving habits and low mileage.
Most of the larger car insurance companies offer this type of program. Some include Progressive, Allstate, Geico, Esurance and others. With pay-per-mile coverage, you typically pay a base rate plus a per-mile rate. With these programs, the insurers track your driving habits such as hard braking and speeding and offer reduced rates or discounts for your safe driving. In some cases you can get a discount just for signing up.
5. Choose A Higher Deductible
Choosing a higher deductible is the fastest, easiest, and most absolute way of lowering your monthly premium on your car insurance. Generally, the higher your deductible (the amount of your claim you will pay out of pocket), the lower your insurance premium will be. Some drivers don’t like having a high deductible because they worry they wouldn’t have enough money to cover the cost in case of an accident.
Auto insurance coverage includes a deductible, the amount the insurance company deducts from your total payout if you file a claim. Car insurance companies will offer multiple options for your deductible amounts when you purchase your insurance. If you can afford it, it may be worth it to choose a higher deductible to reduce your premium. However, make sure you are able to afford the deductible if you have an accident.