Let’s cut right to the chase -- you’re interested in saving money. So am I. Let’s skip the introduction and boring fluff and get to the tips that will help you save:
1. Get A Cheaper Car
Not only will you save on initial costs, but your monthly payments will also be lower. Insurance costs vary by make and model, so be sure to get a quote before you making a final decision, in order to better understand how much the car will cost in the long-run. You might save money by paying a little more for a car with cheaper insurance.
2. Buy Your Car
If you don’t own your car, you are probably being forced by your leasing company to have collision and comprehensive insurance. Once you own the car, you can remove these policies (at your own risk) to lower your monthly premiums.
3. Raise Your Deductible
A sure way to lower cost is to decrease your limits. Make sure you know what coverage is being lowered and if you are able to cover the additional risk.
4. Change Coverages
Review your policy and see where you might be able to tweak coverage or remove certain coverages. Do you really need roadside assistance if your car is in good shape? Consider removing it from your policy, or perhaps another service that isn’t providing much benefit.
5. Bundle Policies
If you can bundle your auto policy with the same company that provides another type of insurance for you (like homeowner’s), you could get a nice discount. When you get an auto quote, also quote the other policies you have or might want.
6. Change Your Payment Method
I won’t say which insurance I have, but I was paying $5 per month for a debit card charge. That was over 10% of my premium just in a payment fee. I realized that by switching to a direct draw from my bank account, it would be free. I made the change and now save $60 a year. Look into whether you are paying more for your payment option.
7. Get Better Credit
A lower credit score will get you lower premiums. Start paying bills on time and find services that will help you achieve this goal. Once your credit improves, reach out for another quote to see if you can get a lower rate.
8. Drive Carefully
This one is obvious, but it must be said -- accidents and tickets will increase your premiums. Even if you are “forgiven,” it will affect your rates later down the road. You will pay for it eventually! If you want to save money, then drive like it. Don’t speed. Don’t be distracted by your phone. And definitely don’t drive while under the influence.