A car simplifies your movement because you don’t have to wait for the bus or a taxi if you want to go somewhere. However, with the added cost of insurance, you will be personally liable in the event of an accident without auto insurance. So, ensure that you have car insurance if you have a car to drive with ease.
While getting auto insurance, you must ask your insurance agent about the different ways to save on your insurance coverage. However, ensure that you do not save too much to the extent that you leave yourself vulnerable or underinsured.
Because you will not have saved at the end of the day; instead, you will spend more in case of an accident. Before we discuss the various ways you can save money on your car insurance, you must understand the cost of car insurance.
How Much Does Car Insurance Cost
Various factors influence the cost of car insurance, including the state you reside in, the driver, the insurance company, and the type of insurance coverage you settle on. However, if you want to save money, knowing the typical amount a driver pays is essential. Unfortunately, the cost of auto insurance is increasing due to economic changes.
A survey conducted by AAA found that in 2020, the average driver paid a total of $1,202 for auto insurance. This is a significant increase from $1,190 paid in 2018. Therefore, as you budget for your auto insurance, keep in mind that the cost increases as the years and the economy changes.
How to Save Big on Your Car Insurance
Once you know how much it will cost you to get car insurance, you can request your car insurance agent to recommend various ways to save on car insurance. Alternatively, you can browse the net as there is a ton of information for those willing to go the extra mile.
Apply the methods discussed below if you want to save some bucks on your insurance policy.
- Shop around for better rates
Car insurance costs vary from company to company, so do not just settle for any insurer. Do your research. If it’s your first time, get the assistance of a car insurance expert to avoid being shortchanged or overcharged. Your agent will guide you through the whole process, explain the different car insurance coverages, and recommend the best one for you.
Do not be afraid to ask questions if you are unclear about something. Then get quotes from the top three insurance companies in your list and choose the one with the best conditions, highest rating, and least amount of complaints. Alternatively, you can ask friends and relatives to recommend their best car insurance company with the best rates in the market.
Although we discuss how to save big on your car insurance, keep in mind that the lowest cost is not always the best. This is because it could leave you vulnerable or underinsured. So, ensure that the insurance company has an excellent reputation while getting a better pricing deal. And you are comfortable with their services, from car insurance agents to customer service.
- Bundle your policies
Most insurance companies offer a discount if you get insurance for several vehicles or want to bundle up your auto and home insurance. This is the most straightforward way to save, and the discount can go up to 15%.
You also save on the amount of paperwork, and you just have to keep track of a single premium, meaning the chances of missing a payment are low.
- Take advantage of the available discounts
Insurance companies offer clients dozens of discounts, provided you meet their conditions. So ask your car insurance agents which discount you qualify for. Some of the discounts that are most common include:
- Being a senior citizen
- Indoor parking space
- Have extra safety features on your car, such as an anti-theft alarm
- Military service
- Your job types, such as teacher or nurse
- A good student
- A clean driving record
- Higher deductible
When selecting your insurance coverage, you must choose a deductible, only applicable to collision and comprehensive coverages. A deductible is an amount you pay before your insurance company picks up the tab in the event of an accident or damage to the car. The deductibles range from $250 to $1000.
Your premiums are high when your deductibles are low and lower premiums when your deductible is higher. Therefore, if you want to save on insurance costs, you should consider increasing your deductibles. However, ensure that this is an amount you can afford at a moment’s notice. You can save for your deductibles in an emergency fund.
- Be keen on the road
Be a responsible driver who values the lives of other drivers on the road by driving carefully. Although we understand it is easy to be distracted, being aware of your distraction and avoiding them ensures that you are involved in fewer accidents.
The more accidents you have, the more your insurance company raises your premiums. If you have a next-to-clean driving record, some insurance company offers discounts. So take advantage of this discount by paying attention to the road and reducing the number of violations.
- Take a defensive driving course
Some states offer drivers a certain discount if they have taken the defensive driving course. This course helps drivers reduce the points of violations on their licenses if they take accident prevention or defensive driving course.
So before getting car insurance, ask your car insurance agent how the discount will impact your premium if you take any or both of these courses. Ensure that you are saving a significant amount; after all, you invest your time and money in the course.