What Are Some Ways You Can Save On Car Insurance? This include the following: Install Safety and Security Devices, Dig for Discounts, Combine and Consolidate Policies, Opt for a Higher Deductible, etc..
Car insurance is a must if you own a vehicle, and you’ll be glad you have it after an accident. But you don’t want to spend a penny more than necessary on a policy, and you shouldn’t have to. By knowing exactly what affects your auto insurance rates, you can figure out how to save on car insurance and get good coverage without breaking the bank.
What Are Some Ways You Can Save On Car Insurance?
You may think that your auto insurance bill is set in stone. Not necessarily. The good news? Your savings on coverage may just be getting started. The following tips could help you get cheaper car insurance:
- Install Safety and Security Devices
- Dig for Discounts
- Combine and Consolidate Policies
- Opt for a Higher Deductible
1: Install Safety & Security Devices
While safety features like anti-lock brakes and air bags are now required by law in the U.S. for all new cars, be sure your insurer knows if your older car has such safety devices—it could save you some cash. Security devices may also help you cut your bill.
2: Take advantage of car insurance discounts
Every insurance company offers special ways to lower your car insurance premium. To make sure you’re getting all the discounts you’re entitled to, ask your agent to review your possible savings.
Here are some discounts offered by the four largest car insurance companies. But remember to compare quotes based on your own situation. Just because an insurer offers many discounts doesn’t mean it offers the lowest overall price.
Allstate offers discounts based on vehicles, coverage options, lifestyle and driving. They range from a 5% discount for setting up automatic premium payments to a 35% good student discount. In some states, the company also offers Drivewise, a usage-based insurance program, and Milewise, a pay-per-mile program. Some drivers could save up to 39% by allowing Allstate to track their driving through these programs, the company says.
Geico offers discounts for vehicle equipment, driving history and habits, driver training, customer loyalty and membership in one of 500 “affinity” groups, such as organizations and employers. In addition, military members may be eligible for up to a 15% discount, and federal government employees and retirees may be eligible for up to an 8% discount.
Progressive offers discounts for owning your home, starting your quote online and signing documents online when purchasing coverage. The company also offers Snapshot, a usage-based program that tracks mileage and driving habits. Most customers earn a discount with Snapshot, but some customers may pay higher rates at renewal time if their driving data reveal risky habits.
State Farm offers discounts for students, vehicle-safety equipment and safe driving, among others. The company’s Drive Safe & Save usage-based program gives customers an initial 5% discount for signing up. Safe drivers who log relatively few miles can save as much as 50% on car insurance, the company says. The program and discounts vary by state.
3: Combine & Consolidate
Many households with more than one vehicle maintain separate insurance policies for each, but they may be missing out on a multi-car discount of up to 25% on most coverages. Move all your vehicles to GEICO and see how much more you could save.
Depending on the state you live in, you could be eligible for a multi-policy/multi-line discount if you buy more than one type of coverage through the same insurer. Pairing auto and homeowners insurance is the most common scenario, but pairing auto insurance with renters, condo, or mobile home insurance could yield similar results.
4: Opt For A Higher Deductible
Typically, the higher your deductible (the portion of your claim you pay out of pocket), the lower your insurance premium. Many people avoid having a high deductible because they worry that they wouldn’t be able to cover it if something happened. To put your mind at ease, try opening a separate savings account just for emergencies.
5. Drive a car that’s cheap to insure
Before you buy your next car, compare car insurance rates for the models you’re considering. The vehicle you drive affects your car insurance premium, particularly if you buy collision and comprehensive coverage. Safe and moderately priced vehicles such as minivans and small SUVs tend to be cheaper to insure than flashy and expensive cars.
Learn More: What Insurance Is Cheaper Than Progressive?
The price of auto insurance is likely to continue to rise in the future. However, there are many things you can do to reduce the sting. These 5 tips should get you driving in the right direction. Remember also to compare the best car insurance companies to find the one that fits your coverage needs and budget.