10 Ways to Save Money on Car Insurance
Car insurance is a necessary expense for owning a car, but it can also be a major budget drain. The average cost of car insurance in the United States is $1,561 per year, and that number can be even higher for drivers with poor credit, a history of accidents, or who live in high-risk areas.
But there are a number of things you can do to lower your car insurance costs. Here are 10 tips to help you save money on your car insurance:
1. Shop around for quotes.
The most important thing you can do to save money on car insurance is to shop around for quotes from different insurers. Don’t just go with the first company you come to. Get quotes from at least three or four different companies before you make a decision. You can get quotes online, over the phone, or in person.
When you’re getting quotes, make sure to compare apples to apples. Make sure you’re getting quotes for the same coverage levels and deductibles.
2. Raise your deductible.
Your deductible is the amount of money you have to pay out of pocket before your insurance company starts to cover the cost of a claim. The higher your deductible, the lower your premium will be. However, it’s important to choose a deductible that you can afford to pay if you have an accident.
A good rule of thumb is to choose a deductible that is equal to about 10% of the value of your car. For example, if your car is worth $10,000, a good deductible would be $1,000.
3. Consider lower coverage levels for older cars.
If you have an older car that is not worth a lot of money, you may not need to carry comprehensive and collision coverage. Comprehensive and collision coverage will protect your car if it is damaged in an accident or stolen. However, it can be expensive, especially for older cars.
If your car is worth less than $5,000, you may want to consider dropping comprehensive and collision coverage. You can still carry liability insurance, which will protect you if you are in an accident that injures someone else or damages their property.
4. Take advantage of discounts.
Many insurance companies offer discounts for things like good driving records, low mileage, and having multiple policies with the same company. Be sure to ask your insurance company about all of the discounts that they offer.
Here are some of the most common car insurance discounts:
- Good driving discount: If you have a clean driving record, you may be eligible for a good driving discount.
- Low mileage discount: If you drive fewer than a certain number of miles per year, you may be eligible for a low mileage discount.
- Multiple car discount: If you have more than one car, you may be eligible for a multiple car discount.
- Anti-theft device discount: If your car has an anti-theft device, you may be eligible for an anti-theft device discount.
- Student discount: If you are a student, you may be eligible for a student discount.
- Military discount: If you are in the military, you may be eligible for a military discount.
5. Drive safely.
The best way to save money on car insurance is to drive safely. The fewer accidents and claims you have, the lower your premiums will be. Here are a few tips for driving safely:
- Always obey the speed limit.
- Don’t drive under the influence of alcohol or drugs.
- Don’t drive distracted.
- Wear your seat belt.
- Take a defensive driving course.
6. Use public transportation or carpool when you can.
The less you drive, the lower your risk of having an accident. If you can, use public transportation or carpool when you can. This will help you save money on gas and car insurance.
7. Install anti-theft devices.
Cars that are equipped with anti-theft devices are less likely to be stolen. If you install an anti-theft device in your car, you may be eligible for a discount on your car insurance.
8. Insure a smaller car.
Smaller cars are generally cheaper to insure than larger cars. This is because they are less expensive to repair and replace. If you are looking for a new car, consider getting a smaller car to save money on car insurance.
9. Look for additional discounts.
There are a number of other ways to save money on car insurance. For example, some insurance companies offer discounts for seniors, good students