How to Save Money on Car Insurance
Car insurance is one of those necessary evils we all have to deal with. If you're going to be on the road, you're legally required to have insurance to cover you in the event of an accident. However, there's no reason to pay more than you have to for the insurance you need. If you want to save money on your car insurance, without sacrificing any benefits, follow these tips.
Tip #1: Increase Your Deductible
No one likes having a high deductible; the more money you have to pay out-of-pocket, the less your insurance coverage seems to be worth. However, if you increase the amount you pay on fender benders, your rates are going to go down. This means minor accidents will be more of a burden, but major accidents are still going to have plenty of coverage.
Tip #2: Get A Cheaper Car
The more expensive your car, the more expensive the insurance. Flashy muscle cars, or tricked-out sport utility vehicles with all the latest bells and whistles are big, fat targets for accidents and damage in the mind of insurers. A simple, dull, four-door sedan, though, is a much smaller risk, and it will come with understandably smaller insurance payments.
Tip #3: Pay All At Once
When you get car insurance you typically have the option to pay by the month, or to make a yearly payment. If you pay for all of your car insurance for the whole year, you can save a big chunk of money. It's more expensive up-front, but it's also one less bill you have to concern yourself with throughout the year. And if your circumstances change, you can take comfort in the fact that you're paid up and covered.
Tip #4: Keep Your Credit Score High, And Your Mileage Down
Not everyone knows it, but lots of insurance companies give discounts to drivers who keep their mileage low. So if you have a car that you just use to commute to work, or if you work at home and use your car to run errands around town, then you might be just the kind of driver that can really benefit from these breaks. Additionally, if you have a high credit score, you're more likely to get lower rates on your insurance. This strategy can also be used to help young drivers, since small purchases with credit cards as a teen can reap big rewards with a credit score.
Tip #5: Get A Package Deal
The older you get, the more different kinds of insurance you need to have. Health insurance, home or renter's insurance, life insurance, and the list goes on. Instead of paying a bunch of separate bills, it may be possible to get a single, package deal on your insurance. Ask your provider, and crunch the numbers to see if you can combine your policies in order to pay a smaller overall bill.
Tip #6: Move Somewhere Safe
Certain parts of the country represent bigger risks for insurance companies than others. For example, say two drivers have the exact same car. One of them lives in a small town with a low crime rate and small traffic accident rate, which, statistically, puts them at a lower risk of making an insurance claim. The other driver lives in a major city, in a neighborhood with high crime and a high accident rate. The driver who poses a bigger, statistical risk is the one who's going to get hit with higher premiums. That's why if you're going to move, it's important to call your insurer to get your new rates.