Tips For Saving Money On Car Insurance

Car insurance is a necessary evil that is required by law in every single state. When you want to lower your payments, look into these tips:

Increase the deductible

When you pay a higher deductible, the insurance company pays less when you need to file a claim. This means that they incentivize people to opt for a higher deductible by lowering the cost of the insurance. People can save about $200 a year by increasing their deductible from $500 to $1000. 

Pay Attention to Your Credit

Credit plays a significant part in the cost of your auto insurance. People who have increased their credit to the next tier typically save about 17% on their annual premium. Things that car insurance companies care about the most include: 

  • bankruptcy
  • collections
  • duration of credit history
  • foreclosures
  • late payments
  • outstanding debt

Drive an older car

Newer cars are more expensive to insure. INsurance for a five-year-old car will cost 13% less than insurance for the new version of the same car. 

Low mileage drivers

People in retirement or people who work from home may not drive very often. Most people drive roughly 12,000 - 15,000 miles in a year. If you drive significantly less than this, you can save 5 - 10% on your premium. 

Pay in full

Most people pay for their care insurance monthly for the ability to make smaller payments. However, if you have the funds, paying in full can save you about $62.

Bundle up

Most companies offer discounts when customers bundle up their car insurance with their home or renters insurance. Companies do this to get your business for both products. You can save an average of $110 when you bundle your home insurance with your car insurance, and you can save an average of $72 when you bundle your auto insurance with your renter's insurance. 

Good grade discounts

Students drivers can cause your premiums to increase by up to 100%, but you can save if the student has good grades or doesn't drive while attending college over 100 miles away. 

Install anti-theft equipment

Particularly if you live in an area with high rates of car theft, car insurance companies will provide discounts for installing anti-theft equipment. 

Eliminate unnecessary insurance

Go over your coverage with your insurance agent and talk about what features you need and which ones you don't. Remember that eliminating certain coverage may put you in an uncomfortable situation when you get into an accident. 

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