If you have a nagging feeling that you are paying too much for your car insurance, it is definitely worth the time and effort to take a close look at your premiums. Once you know what you’re paying, you can research and compare it with other options. Doing so may help you save some of your hard-earned money on this necessary expense.
With this in mind, the following tips may help you to lower your car insurance coverage:
Look for a Company that Offers You a Specific Discount
One of the easiest ways to save money on car insurance is to shop around for a company that will offer you a discount. For example, if you are a member of the U.S. military or you are the child of someone who served, you are likely eligible to apply for car insurance discounts through certain companies. For example, USAA offers its military members affordable car insurance policies, so by simply switching companies, you may be able to save a bundle. In addition, many insurers provide additional discounts for things like being a good student or for taking driver training courses.
Raise Your Deductible
Take a close look at your car insurance premium to check your deductible amount. By raising your deductible, you should be able to significantly lower your premium. Granted, while it might be nice to have a low deductible and not have to pay a lot out of pocket if your car is damaged, the amount you are paying for higher rates is probably larger than these savings. Speak with your agent about raising your deductible and then set aside this amount in savings; this way, if you do have to file a claim you will have the out-of-pocket amount ready.
Ask About Low Mileage Discounts
When you first set up your car insurance, your agent probably asked you how many miles you drive in a typical week. If you have since moved closer to your work, found a new job closer to home, carpool regularly with co-workers or are on furlough from your work, give your agent a call and ask about low mileage discounts. Some car insurance companies will give you a price break on your premium if you drive less than the average number of miles per year.
Consider Buying a Different Car
Here is an interesting tidbit: Insurance companies will track which makes and models of cars, and even which car colors, are more likely to end up being part of a claim. If you drive a more spendy sports car with plenty of horses under the hood, your insurance company is probably charging you more. On the other hand, SUVs and other non-flashy and practical cars often are cheaper to insure. If you love your car, by all means, keep it. But if you have been thinking about shopping around for a new vehicle and are fine with the idea of an SUV or minivan, check with your agent prior to test driving cars to see which options will save you the most money. You may be pleasantly surprised to learn a change in the car will result in big savings on your premium.
The Savings are There—Now Go Get Them!
As you can see, it is quite possible to save money on your car insurance. You will have to do the legwork yourself by doing some research, shopping around, and possibly changing your insurance company, but having more money in your bank account at the end of the month will make the hard work worth it.