Car Insurance: 10 Cost-Cutters To Save You Money
Auto insurance is a bill most drivers pay for years without questioning it. A few changes can reduce the cost without leaving you dangerously underinsured. Here are ten ideas worth checking.
1. Shop around regularly
Insurers weigh risk factors differently, so the same driver can receive very different quotes. Compare at least a few companies every year or two, and always compare identical coverage.
2. Raise your deductible
A higher deductible lowers your premium. Choose an amount you could pay from savings without strain if you had a claim.
3. Ask about discounts
Common ones include multi-policy bundling, multiple vehicles, good driving, good student, safety equipment, anti-theft devices, low mileage, and completing a defensive driving course. Ask for a full list rather than assuming they have been applied.
4. Reconsider coverage on older cars
Collision and comprehensive coverage pay up to the car's current value, less your deductible. When a vehicle's value falls low enough, the premium may no longer be worth it. Keep liability coverage high regardless.
5. Do not cut liability too far
Liability protects your assets if you cause a serious accident. State minimums are often low compared with the potential cost of a major claim. Saving a little on this part of the policy is rarely wise.
6. Maintain your credit
In many states, insurers use credit-based insurance scores when pricing. Paying bills on time and keeping balances low can help over the long run.
7. Think about the car before you buy it
Insurance cost varies by model, repair cost, theft rates and safety record. Get a quote before you commit to a purchase.
8. Drive less, or tell your insurer when you do
If your commute has shortened or you work from home, your mileage may qualify for a lower rate. Some insurers also offer usage-based programs that monitor driving habits, with trade-offs in privacy.
9. Keep your record clean
Tickets and at-fault accidents raise premiums for several years. Avoiding small claims you could pay yourself can also help, since claims history is a pricing factor.
10. Review coverage after life changes
Marriage, a move, a new job, a teen driver leaving for college, or paying off a car loan can all change what you need and what you should pay. Update your insurer when they happen.
Insurance is one piece of your overall financial picture. If you would like help fitting it into your budget and planning, contact our office and we will be happy to talk it through.
This article is general information, not tax, legal or investment advice for your specific situation.