Sometimes you need a car to make a living. Then again, having one adds other costs that require you to work even harder to afford a car. Along with gas, maintenance, licensing, city stickers, and possibly parking fees, insurance is the capper for automobile expenses. Not only does it add up to a thousand or more dollars per year in some states, but it’s also a legal requirement. However, there are ways to reduce your insurance rates. Consider the following tips for how to save on car insurance and put a few bucks back into your pocket each month!
Pick a Winner
Few of us are insurance experts, and there’s a lot to consider about car insurance before you get a policy. If you’ve just started looking for an insurer, look far and wide and seek advice and recommendations from your friends and family. Find out what they’re paying for coverage and their history with the agency. Was customer service friendly and claims paid promptly? Do an internet search for current customer reviews as well, and compile a top 10 list of agencies. Call or email them for a quote and review the offers. Be aware that if the insurance seems exceedingly cheap, it’s probably too good to be true. A basic background check via Google should turn up any inconsistencies. Review your choices and pick the one that best meets your needs and funds.
Drive Less
That might sound funny, but your rates will go down the fewer miles you drive in a year. The more your car is on the road, the more likely it’ll experience a fender-bender, collision, or worse, so the insurance agency adjusts the costs to reflect this. If you can use public transportation to get to your job, take it, and leave the car for special trips. If your car provides the means to reach your job or run your business, of course, that’s a different story. In that case, consider carpooling with your coworkers and report this fact to your insurer. You might receive a discount for low mileage.
Skip Unnecessary Coverage
Older cars are insured for lower rates because they’re less valuable, meaning that after a wreck, the insurer won’t pay out as much. You should skip getting collision and comprehensive coverage for older cars because it’s not worth it. You won’t get back much after paying the deductible. Also, consider the fact that paying more in insurance than the car is valued at is pointless. Ask yourself whether buying a beater for so cheap is really a good decision.
Ask Your Insurer About Discounts
Here’s one of the best tips for how to save on car insurance. See if you’re due any discounts. Having great credit and a clean record can get you a discount. If your recently licensed teen has good grades and is on your policy, you can get a discount that way too. Installing anti-theft devices, insuring two cars, paying online, or insuring your home and car together can all get you a big discount!
