Tuesday, 28 May 2024

14 Best Ways to Save Money on Car Insurance

14 Best Ways to Save Money on Car Insurance
03 Nov

How can you save money on car insurance? Simply park your car in the garage at night and get a discount on your car insurance! Weird, right?!

Well, this read is full of weird and lesser-known facts which help you in saving money on car insurance. I know for a fact that buying car insurance can be confusing — and expensive.

And what if after spending all the money for insurance, you get in an accident and find out you didn’t have the coverage you thought you had?

In this case, the cost of car insurance gets even more expensive than the cost of not having enough or not having the right kind of insurance.

So, don’t plan on bumping with the extra expenses, instead hit the brake and park your eyes at the Every Buck Counts article, and start Saving Money on your Car Insurance!

Read more: Steps to Help You Assess and Get the Best Auto Insurance 

1. Choose the Right Car

The very first and most important step in lowering your car insurance cost is choosing the right car. No two cars can have the same insurance amount, the car insurance rate depends on the make, model, manufacturing year of the car.

Apart from these basic factors, there are various other things that contribute to deciding the insurance rate.

  • Price: An expensive car will cost more on repairs than a cheaper one, thus the insurance company has more to lose which is why the rate of insurance on the expensive car is way more.
  • Safety Record: Some cars have more chances of being an accident, like smaller and sportier cars, which are considered risky because the people who buy them mostly drive fast.

And on the other hand, if we talk about a minivan then it is more likely to be driven at a slower speed because kids might be on board.

But this does not mean that you should compromise on your dream car instead, all I’m asking you is to compare the insurance rates for various cars when you’re choosing one.

So, download the app Clearcover and get a quote for your dream car, the process of getting car insurance and claiming one is extremely easy with this app.

2. Get a Usage-based Insurance

If you don’t drive much then getting usage-based insurance is a much smarter choice. MetroMile offers you pay-per-mile insurance.

The base rate policy for this type of car insurance depends on how much you drive and, in some cases, how well you drive.

With the facility of pay-per-mile insurance, people have saved hundreds of Dollars on Car Insurance.

3. Take a Defensive Driving Course

This is going to help you if you have a poor driving history, a few speeding tickets, and minor violations in your record increase the premium on your auto insurance.

Most of the states keep track of your violations through a point system, each violation incurred by you earns you a number of points.

And this point total is what insurers use to adjust your premium upward, the more points you have for violations, the more you will have to pay for your car insurance.

So, taking a defensive driving course that costs you only a few bucks will help in reducing these points from your driving history.

For Example, A $30 defensive driving course can help in reducing your premium by 10% over the next few years.

Also, there is an app Root, which helps you in tracking your driving behavior, helps you in comparing various auto loans, and provides you with the best available options.

It is worth checking out, and there’s no harm in learning about your driving behavior before you apply for car insurance, as you need to keep a check on everything to get the lowest possible rate.

4. Drop Comprehensive and Collision

An unnecessary expense many drivers unknowingly take on is paying for comprehensive and collision coverage.

If you are in an accident and the other driver is at fault, their insurance company pays to fix your car. However, if you are at fault, your insurance company will only pay to fix your car if you carry collision insurance.

Most accidents are caused by drunk driving, speeding, and reckless driving, so if you don’t do any of these, your odds of getting in an accident are drastically reduced.

Comprehensive car insurance covers damage from accidents like a tree falling on your car. If you opt to buy comprehensive, you are also covered for vandalism and theft.

So, if your car is old and its value is less than your deductible plus the amount you pay for annual coverage, then it’s time to drop them.

Collision and comprehensive never pay out more than the car’s worth. You need to evaluate carefully whether it’s worth paying for coverage that may reimburse you only a small amount.

To ease up your car insurance process, even more, you can Compare various insurance rates from various providers from The Zebra.

5. Opt for a Bigger Deductible

In the meantime, you can save money by choosing a high-deductible car insurance plan. Similar to health insurance, the more you agree to pay if you end up using the insurance, the less your premiums are.

It’s a gamble as you will save money on their policy if you choose a $1,000 deductible and you don’t have an accident.

If you choose a $500 deductible then the premium will be more, but you won’t have to pay as much if (god forbid) you get in an accident.

Factors to consider are:

  • The difference between the two premiums
  • Whether you would get full repairs
  • How much the car is worth?

Calculating these numbers and estimating your risks will help you make a more educated decision.

6. Avoid flashy models

If you have not yet bought a car and are merely researching what you can afford, keep in mind that the type of car you buy can affect your insurance rates.

According to the National Insurance Crime Bureau, the cars most often stolen are the Honda Accord, Honda Civic, and Ford pickups.

No one is likely to claim any of these models are sexy, but these cars are stolen more often simply because there are more of them — they are top sellers.

So, when narrowing your options on a car to buy, check with your insurance company to see which one would be cheaper to insure.

The best way to save money on car insurance is to pay off your auto loan quickly and drop the coverage you no longer want to carry.

7. Ask around for Discounts

A fact that generally people ignore or are not even aware of is that Auto Insurance Companies offer various discounts.

Some of these are too good to be real and might sound weird to you but check out this list and see if you can encash any.

  • Anti-theft Device Discount
  • Anti-lock Brakes Discount
  • Accident-Free Discount
  • Affinity Discount for the United States Chess Federation Member
  • Defensive Driver Training Discount
  • Early Signing Discount
  • Employer Discount
  • Good Student Discount
  • Homeowners Discount
  • Low-mileage Discount
  • Loyalty Discount
  • Military Discount
  • Multicar Discount
  • Multipolicy Discount
  • New Car Discount
  • Passive Restraint Discount
  • Retiree Discount
  • Safe-driver Discount
  • Smart Ride Discount (for Environment-Friendly cars)

While shopping for a car or looking for car insurance, make sure that you ask for all the available discounts, there’s no harm in asking around if you’re able to save a few hundred dollars on your car insurance.

8. Improve your Credit Score

If you’re living in California, Hawaii, or Massachusetts then please skip this point. Your credit score plays an important part when car insurance companies calculate how much to charge from you.

In some cases, credit score matters more to car insurance companies than your driving record.

So, if you are planning to improve your credit score in order to get a better rate for your car insurance then you can follow these simple steps:

  • Make all of your Loan and Credit Card Payments on Time.
  • Keep Credit Card Balances well below your Credit Limit.
  • Open New Credit accounts only when necessary, if you apply for too many credit cards then it might hurt your credit score.

If you want any further help in improving your credit score then please bookmark this article.

9. Shop around and Compare the Car insurance rates

You will get shocked when you will start comparing rates for car insurance for the same levels of coverage provided by different companies.

People have experienced a difference of $500 in-car insurances, so it is very important to compare the rates before deciding on a single one.

Get quotes from several companies once a year in order to make sure that you’re getting the best deal.

10. Reduce Modifications on your Car

People wanting to have different look for their car often go for a car body kit or a spoiler but these modifications are definitely not worth it because they add extra cost to your car insurance.

Car insurance companies increase the premium on your insurance based on the value of your vehicle.

So, an important point to consider when you’re planning to save money on car insurance is that you say no to these unwanted modifications.

11. Your Low-Risk Occupation can Save Money

Oddly enough, mentioning your occupation can help you in saving money on premiums.

This is possible only because of the fact that insurance companies follow trends and in this case the trend is about What professions are the least likely to have an accident.

The list of low-risk occupations includes:

  • Accountants
  • Artists
  • Nurses and First Responders
  • Pilots
  • Scientists
  • Teachers

So, if any of this is your profession then make sure that you emphasize the same and get a better deal on your car insurance.

12. Avoid Filing a Claim for Minor Incidents

If you’re parking your car in your driveway and accidentally hit the wall and your car incurs minor scratches then try not to claim insurance for the same.

You surely do need to discuss this with your insurance company and ask them if it makes sense to claim, they will help you in deciding if it is worth it.

You need to keep a clean claim history in order to reduce your insurance rates in your future car insurance.

So, avoid claiming your insurance for such small damages and instead get your car repaired at your local body shop, it will cost you cheaper and will keep your future premiums at the lower end.

13. Park your Car Safely

Car insurance covers not just accidents but also covers any theft and damage to your vehicle while it is parked.

So, if you mention that you take proper care of your car and park it in a safe place like a garage or private driveway then you can ask for a Preferred Parking Discount.

Well, not all insurance companies offer this but then again, you can always ask for it as there’s nothing to lose.

And also, if your car is parked safely and no damage is incurred then you won’t have to claim your insurance, and hence premiums on your future car insurance will stay lower.

14. Drive Safely

Insurance companies look at your actual driving record while deciding your car insurance rate.

So, the most important point for your safety along with having a lower car insurance rate is that you make sure that you’re driving safely.

In some states, a single speeding ticket can double or even triple your premiums and after a serious traffic violation, your rates are likely to stay high for the next three years.

The same theory applies to an accident in which you've found to be at fault.

A few tips to remind you about safe driving:

  • Keep your speed within the allotted limit

This proves to be efficient for your car as well as it helps in improving the mileage of the car resulting in lower fuel consumption.

So, keep your speed within the speed limit, leave early from home but don’t rush because you are late. Speeding will cost you a lifetime.

  • Stay Sober

Not rocket science but people often ignore this important fact that drunk driving is not at all safe, so please respect your life and your loved ones.

Ask for someone else with a valid driving license to take you home or opt for a cab.

Make sure that whatever you do, don’t get behind the wheel after drinking, if you’re convicted of DWI (drunk driving) then not only your premiums will shoot up but there’s also a good chance that your insurer will refuse to renew your policy at all.

  • Stay Awake

A lot many people ignore the fact that they are tired and they still get behind the wheel.

Driving drowsy can be as dangerous as drunk driving, though there are no rules for the same then again, your life is literally in your hands.

So, if you’re feeling sleepy then let someone else drive or take a nap and then continue with your journey.

  • Avoid Distractions

A very important rule to follow on busy roads is keeping your full concentration on the road.

Talking on the cell phone or even switching radio channels is not a good move, so avoid such distractions as eating or drinking while driving especially during heavy traffic.

The above-mentioned points are sure to help you in reducing the Rate on your Car Insurance, simply follow them and Save Hundreds of Dollars.

So, drive safe, enjoy your ride and remember that Every Buck Counts, so save the most of it!

Have a Happy Journey!


Tags: auto insurance, auto loan, bad credit auto loan

Source: https://www.everybuckcounts.com/best-ways-to-save-on-car-insurance/

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