Auto insurance can be costly, often ranging from one to two thousand dollars each year. Yet, for most people, it’s a necessary expense, making it seem difficult to shop around for the best policy. But just because you need auto insurance doesn’t mean you have to pay an arm and a leg for it, nor do you have to do hours and hours of research just to find a policy that works for you. Take a look at these eight tips to start saving on your auto insurance!
1. Get Insurance Quotes Before Purchasing a Car
If you need insurance for a new car and haven’t decided on a specific car yet, consider getting insurance quotes before making a purchase. Premiums for auto insurance are based on multiple factors, including the value of the car, safety features, estimated repair costs, and risk of theft. Factoring the cost of auto insurance into your new car purchase could help you pick a vehicle that will cost less to insure. Search for vehicles that have high safety ratings or anti-theft features, as these are the types of cars most likely to come with a discount.
2. Use Quotza to Compare Multiple Quotes from Top Providers
Whether you’ve had your policy for a while now or are looking to insure a new vehicle, it’s important to shop around and find a deal that works for you. Quotza is a free online tool that allows you to compare top insurance providers in just a matter of minutes. This is a great option for those trying to find cheaper premiums or better coverage. Even if you’re happy with your current insurance, it’s smart to use Quotza to double check that you really are getting the best deal for your money. Find a range of options that work for you and get multiple quotes, all in one place!
3. Choose a Higher Deductible
Opting to have a higher deductible will result in lower premium costs, providing you with savings if you don’t need to submit any claims. However, what if you do have to submit a claim? Will you have enough saved up to cover a high deductible? In instances such as these, building up an emergency savings fund can be beneficial, in order to afford a higher deductible and benefit from low premium costs. Check out this article for tips on building an emergency fund!
4. For Older Cars, opt for Less Coverage
Some older cars don’t need extensive insurance coverage, as the value of the car may not be worth the cost. Choosing to forego collision or comprehensive insurance coverage can help you save on car insurance, especially if this insurance isn’t cost effective for your vehicle. To determine whether or not this optional insurance is “worth it,” consider how much your insurance company would cover in the event that the car was in an accident. If your car is only worth $1,000 but the annual collision premium is $500, it’s unlikely that the collision insurance is worth the price.
5. Consider Bundling and Loyalty Perks
Bundling your auto insurance with another policy (such as homeowners’ insurance) or insuring more than one vehicle can sometimes provide a discount. Additionally, some insurance companies offer discounts for long-term customers. The bundling and loyalty policies and perks vary between companies, so you’ll need to do your research to see if any of these options are beneficial for you. This is another reason why comparing insurance providers is incredibly important – if one provider offers a particularly generous bundling package, it may make the most sense to get a policy with them.
6. Improve your Credit Score
This one isn’t that obvious, but having a good credit score can also help you get lower insurance premiums! Many insurance companies will consider a person’s credit score when determining their premium amount. This is because some research shows a correlation between responsible finances (and thus a good credit score), and making less insurance claims. Having a good credit score can make you seem a like a “safe” person to insure. If your credit score isn’t great, there are multiple steps you can take to improve it! Some of these include paying bills on time (or early), not maxing out your credit cards, and only opening new credit accounts when absolutely necessary.
7. Research Applicable Discounts
Bundling and loyalty discounts aren’t the only discounts you can get on car insurance! Lots of discounts are available through various providers, including low mileage discounts (if you don’t drive your car that often), good student discounts (for young drivers who maintain a high GPA), discounts on premiums if you pay your entire annual premium at once, and more! It’s important to keep in mind which discounts are actually applicable for your situation, and whether these discounted costs are comparable to the costs of other insurance providers. Taking advantage of one (or several!) discounts can be a handy way to lower your insurance costs.
8. Be a Safe Driver
Finally, being a safe driver will help you save on auto insurance costs in multiple ways! Safe drivers typically have lower premiums and can take advantage of “safe driver” discounts. You can also sometimes take a Defensive Driving course to qualify for a discount, and if you have any points on your license, a Defensive Driving course could reduce these. Defensive Driving courses can be offered either online or in person, but you usually have to sign up in advance. Be sure to talk to your insurance agent to see if you would qualify for a Defensive Driving course discount, and where to find a qualified class.
It's important to have good auto insurance coverage if you ever need it, but that doesn’t mean that you should spend a fortune on insurance premiums! Remember these eight tips to save on auto insurance, and start comparing insurance companies on Quotza today. If you’re looking for other ways to save, check out these twelve tips to save at the gas pump!