What are ways to save on car insurance?
Car insurance is a way to financially protect yourself in the case of loss or damages experienced on your vehicle. You enter into an agreement (typically paid via a premium) with an insurance company of your choosing. The premium is the amount of money you pay for coverage, typically paid on a monthly, quarterly, semi-annual, or annual frequency.
This post is about 5 ways to save on car insurance.
Let’s dive into the top 5 ways on how to save on car insurance.
1. Compare Quotes
Different companies offer different rates! Insurance rates can vary widely, so take some time to research and compare quotes. A lot of insurance companies have this process streamlined. So, you should be able to easily obtain a quote. I like to keep a spreadsheet of what different companies offer, and choose the one that’s the best deal for me.
2. Bundle Policies
It’s no secret that bundling policies can make it less expensive! For example, bundling your renter’s or homeowner’s insurance with car insurance can provide savings on both.
3. Ask for Eligible Discounts
Work a technical job, are you a good student, or have a good driving record? These are all factors that are eligible for discounts. Be sure to ask your provider what discounts you and your situation are eligible for. You’d be surprised what could be applicable!
4. Consider the Type of Car You Drive/Purchase
It’s no secret that the type of car you drive or purchase can be a factor in determining your insurance rate. For example, those who drive sporty cars could mean higher car insurance cost. Be sure to keep that in mind when purchasing a new (to you) car! Speaking of, new cars also have higher insurance rates because they’re more costly to replace and repair should you get into accidents.
5. Review and Adjust Coverage Levels
While there are a few items that you’re required, by law, to include in your coverage, you still have the ability to pick and choose what additional coverages you’d like included. For example, if you have an older vehicle that’s depreciated quite a bit, you could consider dropping certain coverages (like collision or comprehensive) to reduce your premium. Be cautious when dropping coverages as you still want to have adequate protection.
To reiterate, the top 5 ways on how to save on car insurance are:
- Compare Quotes
- Bundle Policies
- Ask for Eligible Discounts
- Consider the Type of Car You Drive/Purchase
- Review and Adjust Coverage Levels
There you have it! Interested in learning more ways to save on insurance? Check this post out for healthcare FSA vs HSA.
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