If you are going to put your money in any financial instrument, you need to know how to manage it well. That’s the same case with your car. Even if you only use your automobile for work or for once-in-a-while activities, having auto insurance is still a necessity. But does that mean you need to pay the expensive premium rates your agent will recommend? Of course not! There are tips and tricks on how you can save on your monthly car insurance cost.
Change Your Deductible
Adjusting your deductible can help you reduce your premium. When you pay out of pocket for damage or injury, the cost is subtracted from the claim amount before your insurance company pays out. So if you damage your car, you might be able to lower your premium just by paying for more of the damage yourself. But it’s important to be aware that a higher deductible means you’ll have to pay more out of pocket if you file a claim.
Consider Vehicles with Good Safety and Security Ratings
Certain safety and security features, like an anti-theft system, can earn you discounts on your car insurance. For example, vehicles with anti-theft devices are less likely to be stolen or vandalized, which means they aren’t as likely to run into accidents. The cost of repairs can also affect your auto insurance rates. Repairs on more expensive vehicles tend to be higher, so choosing an affordable car can keep your rates down.
Evaluate Your Coverage Levels
Inspect your insurance policy. Many states require you to carry liability insurance, but comprehensive and collision coverages are usually optional. If you pay more than 10% of the value of your car on full coverage, you may want to drop that coverage. Also, check your state’s laws on personal injury protection coverage.
Keep an Eye out For Discounts
If you own a car and live with another driver, you may be able to bundle your vehicle policies together for a discount. Good drivers with clean records tend not to file many claims, so they don’t usually have to pay high insurance premiums. Don’t get any traffic violations or have an at-fault accident on your record if you want to save money on your auto insurance. If you’re part of a professional organization, check if it offers any special insurance deals for its members.