Rapid inflation and the high cost of living are reasons enough to find ways to save money, but it’s never easy to go without.
If you’re thinking of selling your car and taking the bus, don’t do it just yet. There’s a chance you can lower your insurance premiums without sacrificing your coverage.
Car insurance costs vary for every driver, depending on their type of coverage, their choice of the insurance company, and the state they live in.
Here’s how to lower your bill in most states.
1. Increase Your Insurance Deductible
Increasing your deductible is the easiest way to lower your car insurance premiums, but it comes at a price.
While your monthly payments decrease, you’ll pay more out of pocket if you file an insurance claim. You’ll have to be confident you won’t get in an accident or crash.
Drivers who raise their deductible could save between 7% and 28% a year on car insurance as long as the risk is worth the reward.
However, if you need immediate auto insurance savings or you drive less than 5 hours a week, you could benefit greatly from a lower insurance deductible.
2. Shop Around for Cheap Car Insurance
If you haven’t shopped around for car insurance in a while, then you’re throwing money away.
Insurers are always looking for ways to save their customer’s money because it encourages them to switch. You should never assume your coverage is the most economical out there.
With that said, comparing car insurance quotes can be a hassle. But with quote comparison sites like Cheap Insurance, you don’t have to call individual companies to find the best deal.
Just enter your zip code and the type of insurance you’re looking for to see hundreds of quotes.
3. Install a Monitoring or Insurance App
Drivers can lower their premiums by enrolling in a usage-based insurance program. Many insurance providers offer mobile applications that measure a person’s driving behaviour.
These apps reward drivers who consistently demonstrate safe driving habits or drive fewer miles.
A sophisticated app can monitor everything from how quickly you stop and turn to the speed you drive. If you have a poor driving record, the app will give you pointers on how to adjust your driving behaviours.
These will result in lower insurance rates and premiums.
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4. Drive Safely to Reduce Insurance Claims
Whether your insurer offers an app or not doesn’t matter, as your driving behaviours will impact the points on your license.
If you make too many insurance claims or perform risky manoeuvres, your rates will skyrocket. High-risk driving offences can stay on your license for a long time.
To keep your premiums low, do routine checks on your vehicle. Always be aware of your surroundings and eliminate all distractions, such as your phone. Keep a safe driving distance, match your speed to your conditions, and don’t drive while drowsy, angry, or emotional.
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5. Consider Removing Collisions Coverage
In most cases, it isn’t wise to drop collision coverage. After all, it’s designed to pay for damages to your vehicle if you’re at fault for an accident.
However, if your loan is fully paid off and your car is more than a few years old, then your vehicle may not be worth the total cost of repair.
As a rule of thumb, you can get rid of collision coverage if you’re driving a used vehicle that’s more than 5 years old and/or is worth less than $2,500.
When your insurance policy is up for renewal, research what your car is worth and how much you’ll save without collision cover.