Auto insurance is a necessity if you own a vehicle, and when accidents do occur, it proves to be well worth the monthly premiums. But still, nobody wants to pay a dollar more than they have to for a policy. The truth is, you shouldn’t (and don’t) have to. There are plenty of ways that nearly everyone can save on car insurance.
Search for discounts
Almost every insurance company has different specials and rewards for their drivers. Simply ask your personal agent to review your account to see if you are eligible for any additional savings.
Obey driving laws
When companies determine any driver’s premiums, the driving record is the most important factor they will consider. The more tickets and accidents on your record, the higher risk you appear to be for the company to cover. If possible, take advantage of opportunities to remove tickets from your record. For example, sometimes drivers are given the option to attend driving school to dismiss or reduce a ticket. Even if you have to pay more to keep a violation of your record, it can end up saving hundreds or even thousands of dollars in the long term.
Drop insurance on your clunkers
At some point in every vehicle’s lifetime, it will depreciate to the point that it is worth less than the deductible paid for yearly coverage. If your car is nearing that point, it may be time to get rid of collision and comprehensive insurance, which would pay for repairs in the case of accidents, storms or vandalism. They will never pay out more than the car is worth, so it is important to evaluate the value of older vehicles compared to the potential reimbursement the extra coverage would provide.
Drive a minivan
In general, applicants who own cars like minivans and crossover SUVs tend be offered much more affordable car insurance than those who have sport or foreign cars. For one they are cheaper to insure, but the demographic of people who own family-oriented vehicles are viewed as much safer drivers, and therefore offered considerable discounts.
Raise your deductible
A simple way to save on collision and comprehensive is to raise the deductible on your policy, or the amount you will have to pay up front when getting any repairs on your vehicle. Higher deductibles mean a lower chance of the insurance company having to shell out cash for petty claims and less money spent on large incidents. According to NerdWallet, raising the deductible by $500 will save drivers an average of $200 per year.
Besides maintaining a clean driving record, shopping around is the most effective strategy when trying to save on auto insurance. Rates can vary by as much as hundreds of dollars a year, so always compare, and don’t neglect local and regional companies. They often offer some of the best customer services and can tailor packages to your needs in ways larger corporations cannot.
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