Car insurance is one of those necessary evils that we all have to deal with. But when it comes to saving money on car insurance, you are in the driver seat! There are many steps you can take to ensure the best deals and the best rates on your insurance. Learning how to save money on car insurance can save you a lot of money every month. Just follow these quick tips!
- Shop Around – When you are looking for insurance don’t go with the first insurance company that comes to mind. Don’t even go solely based on a family recommendation. Insurance rates are different for every driver in every area – all the way down to the specific zip code. By comparing two or more companies you can find the best rate. All of these companies are competing for your business and comparing side by side will reveal the best deal. Be sure to get the quotes in writing if possible. Email is your friend!
- Compare Vehicles – If you are thinking about buying a new car, first of all, congratulations! Secondly, before you get your heart set on that nice two-door sports car, check out what your insurance premium will be. Since your insurance rate is based on the type of car, the price of the car etc. in addition to your age/area, it’s best to know what you’re getting into when you are buying a car. That doesn’t mean you have to go with the minivan or small sedan by any means – just be aware that the price will fluctuate drastically based on the vehicle alone.
- Bundle Up! – If you already have homeowner’s insurance or renters insurance or even another auto policy, going with the same company that you already have policies with is usually cheaper. Check into your current insurance company and see if they offer any kind of bundle deals. The most common ones are home and auto, but some even give multi-car discounts as well as safe driving discounts!
- Deductible Vs. Premium – Your premium is your monthly payment. This is what most people consider when shopping for insurance. What you can afford to pay each month will obviously be a pretty huge deciding factor in the company and policy that you choose. But what you may want to consider is that a low premium will usually mean a high deductible. Your deductible is what you need to pay out of pocket before your insurance will cover the rest. For example, if you total a $10,000 car (please don’t), and you have a deductible of $1,000 you have to pay $1,000 dollars before the rest of the car will be covered. In this example, that is 1/10 the price of the car! Consider a happy medium somewhere between a low deductible and a manageable premium.
- Consider Credit Scores – Whether you want to pay attention or not, your credit scores do matter. Having good credit is something that will help you reduce your insurance premium. Every little bit of paying bills on time and keeping track of credit cards really does help. If you’re not sure what your credit scores are, you can receive them for free with no credit card required.
Saving money on car insurance can be tricky. There are so many factors that go into deciding just how much each individual will pay per month. You can’t control your age, demographics or zip code, but you CAN take control over your deductible, bundling, shopping around, and comparing cars. Keep that in mind next time you need to switch auto policies! Do you have any other tips? Share them in the comments!
Alli is a Chicago based wife and mother of two children. She has turned money-saving into a game and enjoys searching out the best deals to help you save money! Alli shares her insight, tips and up-to-the-minute deals for local and national retailers and brands. Her hope is that you will play the game and learn to save money at the same time!