Jonah JacobsMany people feel a natural high when they get a new car. But once that monthly payment is due along with their car insurance premium, that high turns into a sigh.
While we won’t discuss how you can reduce your car payment, we will dish the dirt on how to pay less for car insurance without sacrificing necessary coverage.
1. Make it a family affair.
You can lower your car insurance premium by adding other drivers to your policy. Insurance companies will often offer this as a way to get more business.
So, if you have any children who are now driving, or your partner or relative who lives with you drives, be sure to add them to get that discount.
2. Shop around.
It’s never been easier to see what competitors are offering thanks to the Internet. If your premium is about to increase and your policy is near renewal, shop around and get quotes from other companies.
Do this every year or two to see what’s out there. When doing so, however, remember that the cheapest isn’t always the best. Look for insurance company ratings to ensure you’re making the right move.
3. Raise your deductible.
You could see great savings on your car insurance payment by increasing your deductible.
This is what you’ll pay out of pocket if something happens to your car, such as an accident, theft, etc. Once you pay the deductible, the insurance company will then step in to pick up the tab.
As a general rule, the greater your deductible, the lower your premium. Ask your agent all the specifics before making a decision.
4. Check your credit.
If you thought car insurance companies didn’t care about your credit history, know that they do.
Improve your credit, and you could see an improvement in terms of your car insurance affordability.
5. Secure your car.
If you have an older car that doesn’t have an alarm or some other form of anti-theft device, you may want to consider installing one. Ask your agent how much you could save on your premium by installing an anti-theft device.
As an example, GEICO claims they’ll cut your costs by 25 percent by adding one. And while you’ll have to pay for the device right now, the insurance savings down the line could be worth it.
6. Get rid of what you don’t need.
One of the best moves you can make to cut car insurance costs is to review your existing policy.
As you do, you may spot several features that you may never use, such as:
- Car rental coverage – Unnecessary if you’ll never use a rental car.
- Roadside assistance – Seen as a luxury to some.
- Collision or comprehensive coverage – May be a waste if your car has little to no value due to its age, condition, etc.
