I wrote a post earlier this month about adequate homeowners insurance so I thought as a compliment to that, I’d discuss car insurance. Car insurance can seem like a necessary evil in life but there are ways to reduce this type of cost to end up with cheap car insurance.
Here are 5 ways you can lower your car insurance premium today:
1. Limit tickets and accidents – This one can seem like a no brainer but getting into accidents and getting tickets for things like speeding will impact your insurance rates and cause them to go up. Avoid things like texting while driving and pay attention to how fast you are going so you can avoid paying the fine and dealing with the increase in your auto rates.
2. Take advantage of the multi-line discount – When you combine your auto insurance with your homeowners (or renters) insurance, insurance companies will give you a discount on the two for what is called a multi-line discount. Take advantage of this discount by making sure your auto and home is insured in the same place.
3. Raise your deductible – The lower your deductible, the higher your insurance premium will be. If you raise your insurance deductible, you are likely to see a savings on your insurance rates. The important thing to remember here is to make sure if you raise your deductible, it’s at an amount you can financially tolerate. There is no sense in raising your deductible to $2,000 if you only have $500 in the bank. In the event of a loss, you would not be able to cover the deductible which could cause delays in getting your vehicle fixed.
4. Drive less when possible – Some insurance companies will offer a discount if you drive under a certain amount of miles each year. This is great for people who work close to home and put very little miles on their car each year. When I worked at State Farm, you had to drive less than 10,000 miles a year to get this discount. Even if you are not sure if you qualify, you can still call your carrier to ask if you qualify just to be sure.
5. Just Ask – There may be other discounts available from your insurance carrier if you have been accident free or a long time customer. Don’t be afraid to call your agent and find out if you are missing out on any discounts. The worst they will say is no!
While cheap car insurance may seem impossible, combining these 5 tips can help you reduce your cost while still being adequately covered for any unforeseen events.