If you’re a car owner, there’s one expense you can’t get around paying – car insurance. Every state requires that you have adequate coverage to protect you and other drivers in the event that there’s an accident. Having an insurance policy may provide peace of mind, but for most drivers, it puts a dent in their budget. Since going without coverage means breaking the law (and leaving yourself vulnerable if you are in an accident), the next best solution would be to find ways to save. If car insurance is a pain in your neck and your budget, these suggestions should help you slash the costs significantly.
Compare Prices Often
Comparing prices is a common tip for saving money on just about anything. Service providers are often willing to reduce the costs to entice new customers over their competitors. However, a little tip that many drivers aren’t aware of is that policy costs change all the time. If you want to keep taking advantage of these deals it is imperative that you compare prices at least once every six months.
Pay in Full
Each insurance company varies, but in many cases, policy premiums can be paid monthly or in full. When customers choose to pay in full, they can save a lot of money. Don’t have all the money upfront? Do you need an installment loan? Installment loans are short-term personal loans in which consumers despite their credit history can borrow as much as $1250. You could apply, pay your insurance in full and repay the loan in installments which can still warrant a significant way to save on paying insurance monthly.
Buy Other Policies
Most car insurance companies don’t just sell auto insurance, many of them offer other forms of policies including house, renter’s, boat, motorcycle, and life insurance. For customers who are willing to purchase more than one policy, most insurance companies are willing to offer a discount on their monthly premiums.
Increase Your Deductible
If you’re involved in an accident, you’re required to pay a deductible before your insurance company will issue payments for the covered expenses. Raising your deductible means there’s less money the insurance company has to put up, meaning they’ll cut you a break. Though this can save you money, make sure that whatever you raise your deductible to that you’re able to afford it. It would be terrible to get in an accident and can’t afford your end of the bargain.
Ask About Discounts
Insurance companies don’t advertise every discount they’d be willing to offer to customers, but there are a lot of opportunities to save. When inquiring about insurance policies, ask the representative about discounts you may be able to take advantage of. There are discounts for government workers, veterans, college students, good drivers, and more. Some companies may be willing to give you a deal simply so you don’t try to buy a policy with their competitors.
Car insurance is, unfortunately, one of those expenses you’ll always have as a car owner, but it doesn’t have to be a burden. If you believe the rates you’re paying are too high or it’s causing you financial hardship, start using some of the above ideas to slash the costs.