Consumers often fail trying to get car insurance at a good price. Wrongly chosen car insurance can cost you additional money each year. If you take care of your family budget and don’t want to waste your money, you should know how to save money on car insurance (also, check how to choose proper health insurance plan).
It’s not right to consider car insurance as something that can have fixed cost only. Quite often it’s possible to lower expenses easily and save money. However, it’s impossible to say exactly how much money you can save because the results vary depending on a consumer’s driving record and a vehicle. Often it’s possible to save up hundreds of dollars a year. Use these tips to add up some extra to your savings!
Consider a Car Pool
Carpooling not just can save you money, but also help to save the environment. You can cut the miles you drive up to 75 percent if you carpool with three other people. The less you drive the more money you can save on your car insurance. It’s important to know that most companies track miles. To be able to get lower rate you should have less than 7,500 miles. If your mileage exceeds 13,000, then you must be ready for a higher rate.
Choose the Right Insurance
It’s necessary to understand that you need a different insurance when your car is new than what you need later. Initial rates are higher and you have to get comprehensive and collision coverage if you have got your car through a car loan. Comprehensive is used to pay for repair or to fix a damage which is not a result of an accident. If you’re in a wreck, collision covers the damage.
You can use Kelley Blue Book to check the value of your car. It can be that you have more collision insurance than you need and it’s smart to drop it on older vehicles. Don’t forget to explore your car insurance options to save money!
Pay Your Bills
It may seem that your driving skills have nothing in common with your bills but insurance companies think differently. Check your credit report, if it’s good that you have a chance to get a discount but you need to check this opportunity with your agent. Most insurers use credit-based insurance scores. The study shows people paying bills and merchant cash advance loans on time less likely to file claims.
Another step which can save you money is to get your homeowners/renters and car insurance through the same company. If you have got your insurances through different companies, you can be overpaying. Combining policies with a single company can save you money and you can benefit from various discounts. Car insurance is always a big risk for insurance companies. It’s more likely that something can happen to your car than to your house (you can break the car or somebody can steal it). By combining policies you lower the risk the insurance company takes and as a result, get better rates.
Audit Your Driving
Just like with carpooling, reducing your driving mileage helps to reduce car insurance rates. That’s why it’s worth considering how you can cut your mileage to save money. Try to find favorite stores in your area and consider a distance factor when choosing a new job. Many people overpay because they don’t inform their insurance agents when they move or change their driving habits. This mistake leads to higher insurance rates!
Always talk to your agent about your money saving opportunities. Most likely, there are things you may not know so you’re paying more than you should. Don’t afraid to ask your agent how you can pay less for car insurance and don’t waste your chance to save more!