Insurance premiums depend on many common factors like your driving record, vehicle model, etc. There are millions of Americans overpaying for their car insurance. Check out our top 5 quick ways to save on car insurance and still have comprehensive insurance coverage.
1. Shop Around
Insurance companies have their own, proprietary algorithms for calculating insurance premiums. Given this differentiation, its in your best interest to compare rates from various insurance companies before choosing a policy and coverage. If you have had the same auto insurance policy for several years, we recommend you at least review your coverage against the market periodically, and switch if you uncover better coverage for better price. You can learn more regarding Why You Should Shop for Car Insurance Every 6 Months.
Bundling auto insurance with home, life or business insurance can save you up to 10% or more on all of your coverage. Keep in mind that even if your current insurance company offers a bundle discount, it doesn’t necessarily mean they are the best option for you. Remember to shop around.
3. Ask for Discounts
- Good driver discount
- Group insurance discount
- Low-mileage discount
- Safe car discount
- Multi car discount
- SmartRide discount
- Paperless billing discount
4. Pay Your Premiums in Bulk
Most insurance companies offer a 3% to 10% discount when you pay your insurance premiums annually or six months up-front. Feel free to ask your insurance agent about details.
5. Raise Your Deductible
By choosing a higher deductible on your car insurance, you can significantly lower your premium costs. The drawback is that you’ll pay more when/if an accident occurs. As such, be prepared for potential higher out of pocket expenses should you be involved in an accident, before you raise your deductible.
A few other ways you can save on car insurance are, choosing a specific car model or maintaining good credit.