Car insurance is a big monthly expense and is becoming more expensive as the cost of cars continues to increase. The average American pays $368 more for car insurance than they need to, and rates vary as much as 154 percent by zip code. There are a number of ways to save money on your auto insurance premiums, some of which will immediately result in savings and others will take longer to see results. Follow these tips for saving money on auto insurance and enjoy peace of mind.
Defensive driving courses and other driving classes can earn you discounts from your insurance company. You can even take the course online if you want to receive a discount. It will only take six hours to complete the course, but the savings you receive can last for three years. Deductibles are what you pay for a claim if it is higher than a certain amount. Comprehensive and collision deductibles both require the policyholder to pay a deductible. Medical coverage, too, usually has a deductible.
Another tip for saving money on your auto insurance is to take out a family plan. A family policy will almost always cost less than separate policies for each individual. You should get separate policies if your children are in bad driving habits. Also, look for special low-mileage discounts from high-risk providers. Lastly, carpool with your kids or take public transportation to work to save money on your auto insurance. If you can’t find the policy that meets your needs, you should consider switching insurers.
One of the easiest ways to save money on auto insurance is to raise your deductible. This will lower your premium amount by anywhere from 15 to 40%. You can raise your deductible from $250 to $500 or even up to $1000 – depending on your insurance company. Just make sure you have an emergency fund ready to cover the deductible amount. Changing your deductible can also reduce your premiums if you have a clean driving record.
You can also consider dropping collision and comprehensive coverage. These policies will cover the value of your car, but your car depreciates as soon as you drive it off the lot. Therefore, it might be a good idea to reduce these coverages. You can also consider getting another policy for your new car, and this will save you money every year. The cost of insurance may be lower than you originally thought. But it will cover the cost of repairs and help you buy a new car.
It is always wise to compare quotes from several insurance companies. Start with the major insurers like Allstate and Liberty Mutual and use online quote comparison tools to compare several quotes from different insurance companies. These sites will ask for basic information about your vehicle and personal details and then provide you with quotes from several insurance companies. Once you’re satisfied with your quote, you can contact the insurance company directly and order the policy. There are many ways to save money on auto insurance.