8 Ways to Slash Your Car Insurance Costs Instantly
Almost everyone is feeling squeezed by the hiking costs of essentials like gas, rent, and phone bills. The same holds true for insurance, and car insurance costs are no exemption. However, car insurance doesn’t have to be a budget buster. Just like you can hunt for cheaper deals on some essentials, you can score serious savings on your car insurance too. Here are 10 tips that can help you drive down your insurance premiums.
Shop Around
Shopping around is your instant of slashing your car insurance costs instantly. Whether you’re getting your insurance for the first time, renewing your coverage, or switching to a different insurer, you shouldn’t overlook how much savings you can score by comparing costs from different auto insurance companies.
Car insurance for the same coverage can vary significantly and that can potentially save you a lot of money. According to the Insurance Information Institute, it’s a good idea to obtain premium quotes from at least three auto insurers so as to compare costs and coverage.
Review and Increase Your Deductibles
If you’re willing to take on a bit more risk, then reviewing and ultimately increasing your deductibles is a surefire way to cut your insurance costs. Insurance deductibles are the amount you pay from your pocket before your insurance starts to cover a comprehensive or collision claim.
By increasing this amount, you can significantly lower your monthly premium. Depending on the increase, you can lower your insurance costs by 5% to 20% or even more. For example, increasing your deductibles from $200 to $500 can lower your coverage costs by 15% to 30%. If you boost your deductible to $1,000 or even higher, it can save you 40% or more.
Bundle and Save Insurance Policies
Bundling your car insurance with other policies like home policy is another way of reducing your auto insurance costs. Most insurers offer multi-policy discounts to policyholders who buy auto and home policies from them. Bundling is also allowed in other coverages including motorcycle and boat insurance.
The multi-policy discount depends on your insurer, but it can generally save you money between 5% to 25%. By choosing the same company for your insurance coverage, you’ll demonstrate loyalty and lower risk profile.
Maintain a Clean Driving Record
Hitting the brakes on accidents and traffic violations is not only good for your safety, but also your car insurance costs. The reason being, a clean driving record free from accidents and other driving violations proves to your insurer that you’re a responsible and safe driver. Your insurer will in turn offer you significant discounts on your car insurance premiums for minimizing risks.
Many insurers offer safe driver discounts ranging from 5% to 20% or even more for maintaining a clean driving record. These discounts can translate to substantial savings depending on your base premium.
Explore Low -Mileage Discounts
Most insurers offer mileage-based discounts to drivers who hit the road less than the national average. This is because low-mileage is an indication of low accident risk. Different companies have different low-mileage discounts. Some have fixed tiers with increasing discounts while others use pay-per-mile programs that track your actual mileage for higher savings.
To explore your options, make sure you track your mileage using a tracking app, ask around for available low-mileage discounts options, and compare these discounts with other insurers providing low-mileage discounts or flexible mileage-based programs.
Take a Defensive Driving Course
Defensive driving courses can save up to 10% on car insurance by enhancing skills and preventing accidents. These courses teach you defensive tactics which help to predict and avoid collisions, bringing the risk down, and which will make you eligible for discounts.
Additionally, several states and insurers offer discounts for the certified comprehensive defensive driving programs. By undertaking these programs, you’ll enhance your driving skills and safety, with an opportunity to save on the insurance premiums.
Consider Safe Parking Discounts
Secure parking protects against theft and damage, saving you money on insurance premiums. Insurers view cars in secure locations like garages or well-lit areas as less susceptible to theft and vandalism, making you eligible for discounts.
Secure parking deters criminal activity, protects your car from extreme weather conditions, and accidental bumps. To unlock savings, compare quotes, consider discount variations, limited coverage, and alternative options like anti-theft devices or tracking systems.
Leverage on Student, Senior, or Military Discounts
Car insurance can be affordable if you make significant contributions to society. Insurers often offer group discounts based on age, profession, or affiliation, benefiting students, seniors, military personnel, retirees, active duty military personnel, veterans, and military families.
To unlock savings, review specific requirements like age ranges, proof of enrollment, driving history, and proof of eligibility for group discounts. Regularly update your information to ensure the best rates and ensure the best insurance coverage for your needs.
Endnote
If you’re feeling the pinch on high car insurance costs, you’re not alone. The above tips can help you take control of your car insurance and put more money back in your pocket. Remember to regularly review your coverage, explore new discount opportunities, and compare quotes to ensure you’re always getting the best deal.
