If you’re looking for ways to trim expenses, one way is to look at your car insurance.By assessing what you need and if you qualify for any discounts, you could save a bundle.
Here are 10 ways to cut car insurance costs, in no particular order. Some ideas are conventional and some are not, but all will help you save money on car insurance.
1. Bundle coverage: Do you also own a home and have life insurance? If you get those policies through the same insurer as your car insurance, you can save money on the premiums.
2. Comparison shop: Prices vary from company to company just like any other product, so it pays to check with more than one insurer. States usually require a minimum level of coverage and that coverage varies from state to state, so make sure to check with your state on its requirements.
3. Get a higher deductible: When you file a claim on the car insurance, there is an amount you pay before the insurance payment starts — called the deductible. Higher deductibles such as $500 or $1,000 on policies mean lower premiums. The downside to that is if you have an insurance claim, you better have the cash on hand to pay that deductible.
4. Ask for a low-mileage discount, if you qualify: Some insurers will give customers who log fewer miles a break on insurance rates.
5. Buy a car cheaper to insure: Car rates are based upon a number of factors including price, average repair costs, safety records and if the vehicle is typically targeted by thieves, according to auto industry used car pricing company Kelley Blue Book.
6. Forgo collision coverage for your vehicle: If you have an older car that would be more expensive to repair after an accident than its worth, you may want to consider dropping collision coverage on your car. The policy will still have to include coverage if you hit another car, but dropping your collision coverage would lower the premium.
7. Take a safety course: Some insurers will offer a discount if you take a safe driving course.
8. Have good credit: Insurance companies take your credit rating in to account when calculating insurance premiums. The way they look at it is drivers with good credit records have fewer accidents.
9. Spy on your young driver: Some insurers offer discounts to clients taking part in their programs that monitor aggressive driving, according to Insure.com.
10. Get the kid to keep the grades up: At some companies, discounts are available on insurance rates if a student driver maintains an “A” grade average. It pays to ask a company what discounts are available.
Do you have any ideas on how to cut money from car insurance rates? Please share them in the comments.
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