Want to know how to save on auto insurance? Tip number one: don’t try to cut corners.
Yes, millions of Americans are paying too much for their coverage. That doesn’t mean that adequate car insurance isn’t important. In a way, your premium is a lot like air — you won’t give it much thought until you need it.
That said, choosing the right coverage can save you hundreds of dollars in the long run. Here are 5 simple ways to save money on car insurance.
1. Shop Around
When it comes to choosing the best car insurance, comparison shopping matters a lot. Make sure to get at least three quotes from different insurance companies. While you’re at it, ask friends and relatives for recommendations.
Once you find a company you like, do your best to research it thoroughly. Many consumer information sites provide this type of information free of charge. Your state insurance department can also be of help in this regard.
2. Adjust the Deductible
For many people, having a $100 deductible will be akin to throwing money away. By raising your deductible, you can lower your premium costs.
How much should you adjust the deductible? That depends on how much money you can set aside for potential claims. Consulting with your insurance carrier can help you shed some light on this situation.
3. Maintain Good Credit
According to various studies, managing your credit well makes you less likely to file a claim. That’s why most insurers will look at your credit history when pricing your premium.
The best way to maintain a solid credit history is to check up on it on a regular basis. That way, you can be sure that all the information is accurate. In a pinch, you can also increase your score in other ways.
4. Estimate Insurance Costs
The value of your car is another big factor in the calculation of premiums. For example, insuring a Honda Odyssey LX will set you back an average of $1,112 per year. By comparison, a Mercedes S65 AMG Convertible will require $3,835.
This is why you should compare the relevant insurance costs before buying a car. Other than the car’s value, you should look at its safety record and repair costs.
5. Bundle Your Policies
Thinking of buying two or more types of insurance? If so, consider combining them with a single carrier. Working with one insurance company will make managing your finances much simpler.
Plus, doing that may allow you to qualify for a discount. For instance, many insurers offer discounts for combining your auto and homeowners insurance. Insuring more than one vehicle with the same company can also fit the bill.
More on How to Save on Auto Insurance
Remember, the best way to save on auto insurance is to choose the right insurer. If you’re still struggling with your decision, look out for other discounts you may qualify for. Again, a little research can go a long way.
Of course, your insurer won’t be able to do much if you’re not able to provide the necessary information. Not sure what that entails? Here’s what you need to do after a car accident.