Let’s face it, we all love saving money, especially when it comes to things like insurance. Many states require you to have an active auto insurance policy for each of your vehicles. But don’t despair, it’s easy to reduce the cost of your car insurance and still comply with the law.
I’ve put together a variety of ways to help you save cold hard cash on your monthly auto insurance premiums. On to the list.
Maintain Good Credit
Surprisingly having good credit can have a positive effect on your insurance rates. The auto insurance industry believes that those with bad credit are people who make bad decisions and have a lot of things on their mind. Their private statistics have shown that those with bad credit are more likely to file a claim.
Drop Full Coverage
While you’re still paying off your car you’ll be required to have full coverage auto insurance. But when you’re done paying your car off, you should remove full coverage and only get liability insurance. You can stand to save hundreds of dollars a month if you do.
Maintain A Good Driving Record
Perhaps the single most important thing you can do to lower your insurance rates is to maintain a good driving record. Just one at-fault accident can send your rates soaring, so be careful on the road and be rewarded with savings on your monthly premiums.
Raise Your Deductible
A deductible is what you pay before your insurance benefits begin. If you want to lower your insurance premium, ask for the highest possible deductible. If something were to happen, you’d be out a pretty penny before insurance kicks in, but if you want to press your luck and save some cash, raise your deductible.
Many people think that since car insurance is a necessity, that all companies are created the same. That’s simply not the case. You can comparison shop on auto insurance rates the same way you shop around for a car.
Buy From The Same Company
If you’re shopping around for auto insurance, your best bet is usually the same company you have your homeowners insurance with. When you bundle these services together you’ll get a discount on your car insurance policy.
Multiple Vehicle Discount
If you or your family members own several vehicles, it’s best you put them all on the same policy in order to qualify for a lower rate.
Yes you read that right. If you’re married you will pay less for your car insurance. The auto insurance companies believe that once you’re married you become a safer driver. It makes sense, as those who are married and have children have a lot more to lose than their single counterparts.
- Your Job. Certain professionals like doctors and teachers get a discount.
- Loyalty discount. If you’ve been with a company for a long time, you’re due for a discount.
- Low Mileage. If you hardly drive your car you should rightly pay less for your premiums.
How do you manage to save money on your auto insurance premiums? Share your tips in the comments section below.