A car insurance is a must for every car-owner.
However, I hope you will agree when I say the costs of an insurance is really high these days, right?
In today’s article, I will tell you some effective ways to save money on your car insurance.
Once you read them, you will be able to save quite a lot by applying.
These are tried and tested methods so you don’t need to worry about whether it will work. Let’s dig deeper.
- 1 15 Ways To Save Money on Car Insurance:
- 1.1 1. Research:
- 1.2 2. Older Cars:
- 1.3 3. Full Up Front Payment:
- 1.4 4. Beforehand Policy Purchase:
- 1.5 5. Insurance Coverage Lapse:
- 1.6 6. Bundle Your Policies:
- 1.7 7. Shop On The Go:
- 1.8 8. Provide VIN To Get Quotes:
- 1.9 9. Credit Boost:
- 1.10 10. Safe Drive:
- 1.11 11. Usage Based Insurance:
- 1.12 12. Educational Degree:
- 1.13 13. Go Digital:
- 1.14 14. Know The Difference Between Companies:
- 1.15 15. Keep Searching:
15 Ways To Save Money on Car Insurance:
I will now give you fifteen tips on how to save your money on car insurance.
First of all, do your research. Make time to know about the different insurance companies. Learn about the minimum coverage requirements and other necessary factors that apply to your state. Having a clear idea on this will help you choose the best for you.
2. Older Cars:
If you buy a five-year old model of a car, it will be up to 13% cheaper to insure than the latest model of that same car.
3. Full Up Front Payment:
When you pay in full up front instead of using an installment plan, you will save an average of $62 per year. So, consider that fact.
4. Beforehand Policy Purchase:
Always try to purchase your policy at least ten days before you want it to be activated. In this way, you will receive a better rate. This option is particularly useful when your policy is coming to an end and you wish to switch to another company of your choice.
5. Insurance Coverage Lapse:
Insurance coverage lapse is a way to make your costs higher. On the other hand, rates drop up to 7.7% after a single year of insurance. Companies offer discounts to maintain the continuous insurance. The amount of liability coverage in your policy directly affects this discount. The insurance discounts only get better with a higher amount of liability coverage.
6. Bundle Your Policies:
Give a good amount of thought into bundling all your policies in one place. For example, if you bundle your car insurance policy with your homeowner’s insurance policy, you can easily save an average of $110 per year. You can also bundle your car insurance with your rental insurance policy and save an average of $72 per year.
7. Shop On The Go:
When you are shifting to a new state, or a new ZIP code even, always consider to buy a new policy. The least expensive state for insurance is as much as three times cheaper than the most expensive state of insurance. You can save a massive amount of money depending on the state. Also, keep in mind that the insurance rates could go higher as well depending on the state. Make sure to check it out.
8. Provide VIN To Get Quotes:
Almost every car comes equipped with a factory alarm. So, when you give your VIN it can help you to qualify for an anti-theft device discount. This way, you get to save some of your money.
9. Credit Boost:
You can save an average of 17% on your annual premium if you increase your credit score by one tier.
10. Safe Drive:
This is a very important factor, not just for saving money on your insurance, but also for your safety and of those around you.
11. Usage Based Insurance:
Maybe live close to your workplace, and is a safe driver who follows rules. Give a thought about using a telematics device on your car. This device shares your driving information with the insurance company. With this device, you can be eligible to save up to 30% on your insurance coverage depending upon your driving behavior.
12. Educational Degree:
When applying for insurance, give your highest educational degree. This can give you lower rates as insurance companies consider it a rating factor. Some even offer you discounts for college grads. Make sure to check the answer to this question on this policy. You might be giving away a lot of money by not looking.
13. Go Digital:
Going digital and opting out of paper can give you a certain amount of discount with some of the companies. So think about going digital with a new policy.
14. Know The Difference Between Companies:
Every insurance company has their own set of a business model that caters to specific types of drivers that pose varying levels of risks. Always check and find the right one for as per your needs and driving style.
15. Keep Searching:
Always look around for new insurance companies and policies that fit yo every six months. Compare all the quotes on car insurance by checking all rating factors and insurance companies that best suit your personal needs.
So, these are some tips and tricks you need to muster to save money on your car insurance. Time to wrap up the article. I hope it was thoroughly enjoyable and helpful. Thanks for reading.