Top 5 Tips for Cheap Auto Insurance
Want to save money on your car insurance every month? Here are a few ways that you can put more money in your pocket and still have the coverage you need.
1. Consider a Higher Deductible
One of the easiest ways to reduce your monthly car insurance premiums is by raising your deductible. When you have a higher deductible, you carry more risk. The insurance provider assumes you will be more careful if you have a higher payout in an accident where you are at fault.
Make sure you don't carry too high a deductible if you cannot afford to pay it in a claim. Even if you are a careful driver, you may end up in a claim with an uninsured driver. In that case, you will still have to pay the deductible even though the accident wasn't your fault. Always keep the amount of the deductible in your savings account to give you peace of mind.
2. Cut Out Riders and Add-Ons
If you have had your insurance policy for a long time, you may have some additional coverage that you no longer need. For instance, you may have taken out coverage for rental car reimbursement and you've decided you could pay out of pocket or do without if your car should need to be repaired.
You may have purchased a new car that is under a warranty that includes roadside assistance. If so, you can drop that coverage from your car insurance policy until the warranty expires. There is no added benefit in having the same coverage twice.
3. Look for Discounts and Deals
If you want cheap auto insurance, one of the best ways to get it is by getting discounts from your provider. Find out what discounts are offered that you qualify for or could qualify for if you make some changes. A good example is switching your homeowner's policy to your car insurance provider.
4. Consider Carpooling
You can often reduce your rates by driving less. Most insurance providers take into account how much you drive. If you carpool instead of taking your car to work every day, you may receive a discount for lower mileage. Talk to co-workers at your job or friends who work nearby to see if they are interested in saving money and getting cheap auto insurance, too.
5. Reduce Your Coverage
Many people continue with the same coverage year after year even if they don't need it. While you always want to carry as much liability as you can to protect yourself and your assets, you don't always need comprehensive or collision insurance. For example, if your car is older and doesn't have a loan on it, you may just prefer to have liability.
Saving on car insurance is possible if you think outside what you currently have. Shop around and find the best rates while looking for other ways to save. You never know just how cheap auto insurance may turn out to be.