You have to buy auto insurance, but you don’t have to overpay for it. Consider 13 tips that can cut your auto insurance costs without compromising your coverage.
- Maintain a clean driving record. Claims, moving violations and at-fault accidents all potentially increase your insurance costs. Enjoy competitive rates and stay eligible for discounts when you practice good driving.
- Increase your deductible. Your premiums decrease as your deductible increases. As long as you can afford the deductible, this move can be a good way to save money.
- Drop collision and comprehensive coverage. Check out your car’s value on NADA Guides to see a rough estimate of what your insurance company would pay you if your car would be totaled. If the value is less than $1,000 consider dropping your collision and comprehensive coverage from your insurance policy.
- Drive less. Some insurance companies give discounts for low mileage. Contact your agent to find out what your annual mileage limits are for lower premiums.
- Ask about car safety discounts. Certain safety features, including antilock brakes, air bags and alarms, could score you big savings.
- Get an insurance quote before you buy a new car. Some cars are cheaper to insure.
- Be loyal. Your insurance company may be willing to reward your loyalty, especially if you’ve been with them for more than five years.
- Check your credit. In some states, Insurance companies reason that you will make fewer claims if you have good credit. That’s why it pays to check your credit regularly and keep your score high.
- Join a club. Professional groups, large employees and civic organizations might offer discounted insurance that costs less than your current policy.
- Monitor your teens. Since teens are expensive drivers to insure, participate in a monitoring program. Cameras that record aggressive driving incidents and GPS that tracks speeding can cut your insurance costs and keep your teen safe.
- Purchase usage-based insurance (UBI). This option requires you to plug a temetatics device below your steering wheel. It tracks when, how often and how you drive, and good driving habits could decrease your insurance costs.
- Bundle coverages. Buy your homeowners or renters insurance policy from the same company that issues your auto insurance, and you’ll receive a multi-policy discount.
- Shop around. Other insurance companies might offer better rates, so shop around. Be sure to use the same coverage limits as your current policy to ensure you receive accurate quotes.
Auto insurance is essential, but it doesn’t have to break your budget. Use these 13 tips to save money. Talk to your agent today for more money saving tips.
