Let’s be honest.
We all want to spend as little as possible on our car insurance while at the same time we want the coverage we NEED if we ever do get into an accident.
To help you save money in 2020 we’ve put together 9 tips on how you can save money on your car insurance in 2020.
1. SHOP AROUND FOR YOUR CAR INSURANCE
Insurance premiums differ from carrier to carrier so the first thing you need to do when trying to save money is to shop around.
Get at least three quotes, from both different insurance companies and different types of insurance companies – that is, those that sell through their own agents (State Farm for example); those that sell through independent agents; and those that sell directly to consumers via the phone, an app or online.
It’s also a good idea to ask friends and family for recommendations based on their experiences with their carrier. This will give you first hand accounts of the claim process with different companies and help you find a carrier who meets your needs.
2. COMPARE RATES BEFORE BUYING A NEW CAR OR TRUCK
Insurers consider a number of factors when setting premiums including vehicle price, estimated repair costs, safety record and the likelihood of theft.
If you plan on buying a new car or truck you may qualify for discounts if your vehicle has built in safety features that reduce the risk of theft or personal injury in the event of an accident.
You can check safety rankings for specific models on the Insurance Institute for Highway Safety’s website HERE using their free Top Safety Pick ratings tool.
3. RAISE YOUR DEDUCTIBLE TO LOWER YOUR MONTHLY PREMIUM
You can raise your deductible and lower your monthly premium significantly depending on your vehicle and driving history. Increasing your deductible from $500 to $1,000 could save you anywhere from $15-$30, sometimes even more per month. It pays to check how your deductible will affect your monthly premium.
Now there are programs in place that will step in and even help you pay your deductibles in the event of an accident. These programs can virtually eliminate your out of pocket expense once you consider the savings from increasing your deductible amount.
For example: Increasing your comp and collision deductible from $500 to $1,000 could reduce your monthly premium by as much as $30. You could then take that savings an apply it towards the monthly membership cost of a deductible relief program which runs $24.99 per month. Now you’ve eliminated your out of pocket expense and saved $5 per month!!
Deductible Funding Solutions was founded by insurance brokers who identified the need for such a program. You can click the banner below to find a program to fit your needs.
4. REDUCE OPTIONAL INSURANCE ON OLDER CARS
As a rule of thumb, if your older car is worth less than 10 times the insurance premium, having collision and/or comprehensive coverage may not be cost effective. To find out whether this is true for you, check the value of your car. You can look up what your car is worth for free on websites such as Kelley Blue Book, National Association of Auto Dealers (NADA), and TrueCar.
5. BUNDLE YOUR POLICIES
Many insurers will give you a discount if you purchase two or more types of insurance from them—such as homeowners and auto—or have more than one vehicle insured. Some companies offer a price break to longtime customers. There are no guarantees so do your homework and compare costs for a multi-policy discount from a single insurer with buying your insurance separately from different companies.
6. PROTECT YOUR CREDIT
Establishing a solid credit history has many benefits, including lower insurance costs. Many insurers use credit information to price auto insurance policies.
Research shows that people who effectively manage their credit make fewer claims.
To be sure you’re getting the good credit you deserve, it’s a good idea to check your credit record on a regular basis to be sure all information is accurate.
7. TAKE ADVANTAGE OF LOW MILEAGE DISCOUNTS
Do you have a short commute to and from work?
If you’re below the average miles driven per year you may qualify for low mileage discounts. Many insurers will automatically adjust your miles driven based on national average making it is very important to check the estimated annual mileage every renewal of your policy to make sure you’re not being overcharged.
8. ASK ABOUT GROUP INSURANCE
Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or from other associations. Check with your affiliated organizations to see what they offer.
9. ASK ABOUT ADDITIONAL DISCOUNTS
There are other discounts that your insurer may offer to policyholders.
For example, some companies offer discounts to those who’ve not had any accidents or moving violations during a specified period, or who have taken a defensive driving course. If there is a young driver on your policy who is a good student, has taken a driver’s education course or is away at college without a car, you may also qualify for a lower rate.
Ask your insurer what discounts you might qualify for, but keep in mind that what’s important is the final cost of your policy. A company that offers few discounts may still be able to give you a lower overall premium price.
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