Are you paying too much for car insurance? I’m sure you’ve seen or heard ads from car insurance companies promising to help you save big. Often, they’ll mention bundling which is a great way to get a discount and save money. But there are so many other ways to save, too.
Did you realize that sometimes even your occupation qualifies you for a discount? Almost every car insurance company offers a military discount, and some even offer discounted car insurance for firefighters, EMS workers, and teachers.
Discounts are one of the best ways to save, but you can also pay less for car insurance by comparing quotes and switching to a company that offers your lower premiums. You can also tweak your coverage to appropriately cover your needs, which may help you save money.
Read on for some of the top ways for you to
save money on car insurance.
#1 – Discounts for Save on Your
Car Insurance
Almost every driver is eligible for at least one discount and many can earn several discounts. Each car insurance company sets up its own discount system, and the discounts listed below aren’t recognized universally.
Still, these are some of the most common car
insurance discounts.
Bundling Discount
If you purchase a homeowners, renters, boat,
or motorcycle policy from the same provider as your car insurance policy, you
will probably be able to get a discount. This discount is one of the most
common, and nearly every provider offers a percentage off of your premiums for
bundling.
Good Driver Discount
Good drivers tend to continue being good drivers. If you haven’t gotten into an accident in three years, you may be able to get a good driver discount. Insurance premiums are based on the risk you present to an insurance provider. Good drivers are low risk, so they usually get a discount.
Getting into accidents will affect your
eligibility for a good driver discount, and so will filing claims and getting
traffic tickets for things like speeding or running red lights.
Automatic Payments Discount
When you set up your payments to leave your
account automatically each month, you’re less likely to miss a payment and more
likely to stick with your current insurer, so they reward you with a discount.
Paperless Billing Discount
Paperless billing saves time and money for the
insurance company because they don’t have to physically mail bills to your
address, so they usually offer a small discount in return.
Low Mileage Discount
It makes sense that you’d pay less for car insurance if you drive fewer miles annually. The less time you spend on the road, the lower the risk that you’ll get in a crash and file a claim.
Obviously, insurance companies like that and
will incentivize that behavior.
Good Student Discount
Teen drivers pay the highest car insurance
rates of any age group. Most car insurance companies will offer a significant
discount for students who earn a 3.0 GPA or higher.
Driver’s Education Discount
A driver’s education discount is vital for teens because their car insurance rates are incredibly high, and they don’t usually qualify for many discounts. Find out which driver’s ed courses your car insurance company recognizes before investing in a class.
If you’re going to take a class, you might as
well get rewarded for it with a discount. You want a good driving instructor and program
that will help your teen drive safely, but you’ll want it to be recognized by
your insurance company so that you can get a discount for it.
Occupational Discounts
Military members can almost always earn a
discount. Some car insurance companies offer reduced rates for first responders
like firefighters, law enforcement, and EMTs. Teachers can sometimes find
insurers who provide a discount for their occupation, as well.
#2 – Comparing Rates to Save
Every six months, you should make a quote comparison. As your personal factors change with time, your current car insurer may not be the best. Some car insurance companies are a better fit with specific demographics.
You must realize that you may not be a good
fit with your current provider anymore as your demographics change.
Switching Car Insurance Companies
It doesn’t take much time to compare rates, and if you find a reputable insurance company where you can save significantly, you should take advantage and switch providers.
It’s crucial to compare identical coverage,
though. Don’t compare different coverage levels between companies because you
won’t get an accurate comparison. Make sure your deductibles and level of
coverage are identical, otherwise you may leave yourself open to unnecessary
financial trouble later.
Talking with Your Car Insurance
Company
Car insurance companies don’t negotiate
premiums. You won’t be able to talk them down to a lower rate, but what they
can do is help you evaluate your coverage, find discounts you may have missed,
or adjust your coverage levels to get your premiums more manageable.
#3 – Tweaking Your Policy to Save
Changing your policy can help you save a lot
of money. Just remember that you’ll pay less when you lower your coverage, but
you’ll also be eligible for fewer benefits.
Reducing Your Coverage
Reducing coverage will definitely help you save money on car insurance, but it’s vitally important not to leave yourself underinsured.
Suppose your car is over 10 years old, and you’re paying more than 10 percent of your vehicle’s value annually for full coverage. In that case, you’ll be better off dropping full coverage and carrying a liability-only policy.
Evaluate all the different types of coverage
you have. If you have coverage that will pay for a rental car should your car
be damaged, you could drop that option if you have a second vehicle or
transportation option.
Increasing Your Deductible
A reasonably standard deductible is $500.
If you raise that to a $1000 deductible, your monthly premiums will lower
significantly. Just remember that you’ll need to be prepared to pay that
deductible if you file a claim.
Switching to a Usage-Based Plan
Your car insurance provider may offer a different type of plan than standard insurance. If they don’t, you may want to consider switching insurers to one that does, especially if you don’t drive much annually.
A usage-based insurance plan charges you based on your driving. Some plans are by-the-mile where you pay a base monthly fee, and then you pay a set amount per mile that you drive.
Other usage-based plans use telematics devices
to monitor your driving habits, and the price is based on that information.
Be Proactive to Save the Most
There are many different ways that you can save on car insurance. None of them take much time, but you do have to be proactive. Your insurance company isn’t likely to call you up and offer you a discount.
It’s your responsibility to review your coverage and make sure you’re taking advantage of any available savings. Set aside an hour this weekend to look over your options. It shouldn’t take much longer than that, and the savings you can find are well worth the time.
