Car Insurance can be very expensive depending on where you live, the make and model of your car, and your driving record. Fortunately, if you know how it’s simple to save money on car insurance. This can be as simple as combining your car and home insurance coverages or as time consuming as improving your credit score.
With all of the costs associated with driving a car, such as maintenance, repairs, and gas, finding ways to save money on your car insurance is a huge relief. However, not all of these cost cutting measures are as common as some of the more obvious ways to save money on auto insurance.
How to save money on car insurance?
Check out some useful and lesser-known techniques to learn how to reduce the amount you spend on car insurance each month.
1. Compare various car insurance policies
Compare auto insurance policies and plans offered by several providers before making a decision to purchase an insurance policy. You’ll be shocked to learn that one firm offers the same services as another but at a different price. There are various websites that allow you to compare insurance in just a few clicks.
Therefore, be mindful of the plan you select. An automobile insurance coverage may at times provide benefits that you do not require. As a result, it is important to double-check the services before proceeding.
2. Make an upfront payment
Instead of paying for your auto insurance on a monthly basis, you may pay for it all at once. Many vehicle insurance providers enable you to pay in advance for up to six months or a year. This is known as “paying in full,” and it may save you up to 12% on your auto insurance.
3. Increase your insurance deductible
When choosing car insurance, you typically have the option of selecting a deductible, which is the amount of money you must pay before insurance picks up the tab in the event of an accident, theft, or other types of vehicle damage.
Deductibles typically range from $250 to $1,000 depending on your policy. The catch is that, in general, the higher the annual premium, the lower the deductible would be.
In fact, the lower the premium, the higher the deductible. Enquire with your agent about how raising your deductible might affect your premium. It may reduce your annual premium by several percentage points and put money back in your pocket, or the savings may be minimal.
If you become hesitate to file minor claims in order to avoid raising your premium, increasing the deductible may be a particularly good decision.
4. Improve your credit score
Believe it or not, Your credit score might influence how much you pay for car insurance. According to Consumer Reports, you may save up to $1,300 on car insurance by paying your payments on time, paying off your credit cards, and correcting any incorrect information on your credit report.
Why is your credit score considered? The Insurance Information Institute’s senior vice president and head of media relations, Michael Barry, puts it this way:
“Many insurers use credit-based insurance scores. It’s a contentious issue in certain statehouses…[but] insurers will say their studies show that if you’re responsible in your personal life, you’re less likely to file claims.”
Regardless of whether that’s true, be aware that your credit score can be used to calculate your insurance premiums, and do everything you can to keep it high.
5. Maintain your coverage
Sticking with the same car insurance company for a long period of time also may help you save some money on your premiums. Many auto insurance companies provide this type of discount—just make sure you’re saving money on your premium.
Sometimes an insurer would raise your premium by, say, 25% before offering you a modest reduction in exchange for your loyalty.
This is done to trick you into thinking you’re getting a deal but, in reality, you’re paying more.
6. Combine your insurance coverage
Some people require home or apartment insurance in addition to car insurance. Many insurance companies allow you to combine all of your different types of coverage.
Best of all, you can qualify for a discount by doing so. Bundling your auto insurance with insurance for your home, apartment, or condo can save you between 8 and 11 percent on average, according to Insurance Business America.
7. Reduce the number of miles you drive
Another great way to save money on car insurance is to reduce the amount of time you spend driving. Many car insurance companies provide low-mileage policies.
This means that you must drive less than a certain number of miles per year, usually 7,500 miles or less. In exchange, depending on the company, you could save up to 10% on your car insurance. There are numerous simple ways to save money on auto insurance that may not be obvious at first.
Always inquire with your insurance agent about ways to save money. And, if you believe you are overpaying, shop around for more affordable coverage. And, to make things easier, try car insurance comparison and broker app, etc.
The Jerry app is a good place to start if you want to save money on car insurance. Jerry, a licensed broker, does all of the legwork in locating the lowest quotes from the top name-brand insurance companies and purchasing new car insurance. Jerry will even assist you in canceling your previous policy. And, to ensure you always have the best rate, Jerry will send you new quotes every time your policy is up for renewal, ensuring you always have the coverage you need at the best price.
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