November 12th, 2013
When it comes to car insurance, getting the right policy for your lifestyle can be an affordable way to find great coverage. Most people forget about potential savings once they've bought their policy. However, for penny-pinchers everywhere, there are a few ways you can reduce your monthly payment and keep the same plan.
1. Increase your deductible
Raising your deductible can have a lasting impact on your monthly insurance rate. However, it will also make you more liable to pay off a claim before the insurance company will start to cover the expenses. In this case, it's important to be sure you have the extra cash on hand in the event of an accident. This method can cost less month-to-month, but if you're an accident-prone driver, this might not be the best alternative to saving money. For drivers with a clean record and no accidents, raising your deductible can be a great money-saver.
2. Carpool or drive less
The fewer miles you drive, the less your car insurance will cost. A carpool with a few other people can reduce your spending by as much as 75 percent on your commute. As far as insurance companies are concerned, the more you drive, the more likely it is that you will be in an accident. Some insurance companies will offer discounts for low mileage drivers.
3. Combine policies
Getting your car and home insurance policies from the same provider as a bundle can end up saving you a significant amount of cash. When going through the same insurer for different types of coverage for your life, you can capitalize on stacking discounts.
4. Pay your bills
Insurance companies use your credit score as a way to predict how likely you are to pay your bills. Your credit history has a lot to do with your credit rating, and can be improved by paying all your bills on time. Lower credit scores can make you appear as a higher risk for insurers and result in higher payments. A good score will have the opposite effect, leading to lower monthly payments.
5. Compare policies
Shopping around is an important step to make when buying car insurance as rates can vary greatly. It's essential to compare policies to ensure you get what you need. If you own a new car, you might need certain types of coverage for a length of time. Once these requirements expire however, you can save by dropping some of the unnecessary coverage. Some car owners will often forget they can save money this way. Your policy should depend on several factors, including what kind of car you drive and how you use it. Not all coverage is the same, so ensuring you find the right one for your lifestyle is the best way to save money when buying car insurance.