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June 13, 2018 | auto

8 Tips to Reduce Car Insurance Costs

If you’re like many people these days, you’re always looking for a way to squeeze the most you can out of the money you have. One place to save money in your budget is to review your car insurance costs. In this article, we’ll cover some ways to reduce your premiums without reducing your coverage.

Review Your Current Coverage

It can be challenging to save money when you don’t know how much you’re spending and what you’re spending it on. If it’s been a while since you last looked at your coverage, you might find that your current insurance needs are different than when you first got the policy.

Here are some things to consider:

  • If your household has more than one car, you might be able to forego rental reimbursement coverage.
  • If you have a roadside assistance plan through your mobile provider, auto club, car warranty, or other source, you can probably eliminate this cost on your insurance policy.
  • If your collision coverage contains uninsured/underinsured motorist (UM) coverage, you might not need to pay for this separately. However, if this is the case, your UM coverage would be subject to the deductible for the collision coverage rather than the normal $250 deductible for UM coverage.
  • If you have excellent health insurance, you might want to consider changing the medical payments or personal injury protection portion of your policy. Just be sure to discuss this with an insurance agent first.

Get Several Quotes

Once you know what coverage you have today, you can begin making plans for tomorrow. Request costs from a few well-known companies now that you know exactly what type of coverage to get quoted. You can get a quote by calling or going online—but be aware that when you share your email address and phone number, you may receive a lot of attention from companies soliciting your business.

Talk to Friends and Colleagues

Are the people you know happy with their insurer? Did they face a variety of hassles the last time they were in an accident? You may be able to narrow your list of options by asking questions about their experience with their insurance provider. After all, saving money isn’t just about finding the lowest monthly premium—if an insurance company costs you more in the end by misrepresenting coverage or service, it might not be worth the immediate savings.

Maintain a Good Credit Score

Most insurance companies use credit information to price auto insurance policies, because research has shown that those who manage their credit score typically file fewer claims. Establishing a good credit history and keeping it will help you in a number of ways, and your car insurance is one of them.

Update your Deductible

The deductible is your portion of the total costs for an insurance claim. You’ll have many options for how much your deductible will be, and it depends on how much money you’d be able to cover in the case of an accident or other claim.

For example, this writer called to find out what kind of coverage was purchased, not having checked for a very long time. As a younger person with a lower income, the deductible had originally been set at $500, many years ago. Making no other change than raising the deductible to $1,000 saved a few hundred dollars a year.

Ask About Discounts

If your household has more than one vehicle, your insurer may offer a discounted rate to insure all of them on the same policy. Similarly, you may qualify for discounts if you also purchase homeowners or renters insurance from the same insurer.

Some insurance companies even offer discounts to drivers who keep their car’s annual mileage lower than average. For example, if you work from home and don’t drive very much, this would be a great discount to ask your insurer about. And, you might be able to get discounts based on your vehicle’s anti-theft and safety features.

You may also be a member of an organization that offers group insurance discounts. This could be because you work for a company that has an agreement with an insurance company to lower premiums to their employees. Other professional, alumni, and social clubs and associations offer these types of discounts as well.

Student Considerations

Students can qualify for auto insurance discounts as well—these can include high school, college, driver education, and defensive driver students. However, adding a teenager to your policy can increase your car insurance costs by 50% or more. Be sure he or she takes a driver education course before getting their license.

Keep Your Driving Record Clean

Most everyone knows that getting tickets can raise your car insurance premiums, as can being involved in a crash. You may not be able to avoid getting in a wreck—after all, they call them “accidents” for a reason—but you can drive safely whenever you’re behind the wheel. Do your best to obey the traffic laws and be a friendly driver.

We’ve outlined some of the things you can do to save on auto insurance. Do you happen to need a new car to go with that great deal on auto insurance? Check out the rates on auto loans at Amplify Credit Union and we can help you get into the car of your dreams today!

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