Having car insurance coverage is important to keep you protected in case of an accident. It is also illegal if you do not have car insurance. If you feel like your monthly insurance fee is too much for your budget, there are actually a few ways that you can reduce it!
8 Ways to Lower Your Car Insurance Bill:
- Raise the deductible: Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15-30%. Paying a $1,000 deductible can save you 40% or more.
- Reduce coverage on older vehicles: Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers like Drive Casa can tell you the worth of your car, or you can look it up online at Kelley’s Blue Book.
- Low Mileage Discounts: If you drive less than the typical driver you might be able to take advantage of low mileage discounts. Talk with your insurance provider to see if your driving is eligible.
- Buy in Bulk: Many insurers will give you a break if you buy two or more types of insurance, like property and auto insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. Despite this, you may save money buying from different insurance companies, compared with a multi policy discount.
- Keep a Good Credit Record: Credit information and history often influence the pricing of your auto insurance. By maintaining good credit, you can save money each month on your auto insurance bill. If you don’t have great credit, Drive Casa can help! Financing a vehicle with us can actually improve your credit score!
- Compare Costs: If you are in the market for a new car, compare different insurance rates of different cars before picking one out. The cost of your vehicle plays a role in insurance premiums, as well as how much it is to repair it, the safety record, and more. You might even be eligible for discounts if your vehicle is equipped with certain safety features.
- Ask about group insurance: Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.
- Seek out other discounts: Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a driver education course or is away at college without a car, you may also qualify for a lower rate.
Insurance coverage is important to have, but the bills shouldn’t make or break your finances each month. Use this guide from Drive Casa to save money on insurance each month!
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