Paying too much for auto insurance every month? Well you're not alone. Most of us are. The auto insurance industry is huge and those companies are turning huge profits. But that doesn't mean you have to be one of the people making them rich. There are ways to lower your premiums and keep more cash in your pocket each month.
Some simple tricks add up to hundreds of dollars in annual savings. Who doesn't want to save a couple hundred bucks with just a small amount of effort? Read on to find out how you can lower car insurance costs and stop overpaying today.
Shop Around for the Best Car Insurance Rates
Shopping around at different car insurance companies is a good first step to save money on car insurance. Compare quotes from at least 4-5 insurers to find the most affordable rates.
Visit independent broker websites like NerdWallet or CarInsurance.com. They provide quotes from multiple companies so you can compare in one place. check for discounts like safe driver, student, military or bundling with home insurance.
- Review the types of coverage you need: Purchase only the coverage you truly need to legally drive. i.e. perhaps you don't need rental car reimbursement or glass coverage. Removing unnecessary coverage also reduces your premium by up to 20% or more.
- Consider dropping full coverage on older vehicles: If your vehicle is worth less than 10 times the annual premium, full coverage may not be worth the cost. Liability only may be a better option.
Following these tips and taking some time to shop around at multiple companies can help you uncover big savings on your car insurance cost. With persistence, you may be able to cut your premiums significantly while still getting the comprehensive coverage you need.
Request Discounts on Your Auto Insurance
Another way to save some green on your car insurance is by asking about all the discounts you're eligible for. Insurance companies offer ways to lower your premium, so check with your insurance agent to make sure you're getting all the breaks you deserve. Such as:
If you have your homeowner's or life insurance with the same company, you can often get 10-25% off for bundling multiple policies. The more you bundle, the more you save.
Do you have a clean driving record? Ask about a good driver discount which can save you up to 15% for at least 2 years of accident-free driving. Even explore a defensive driving course to help your eligibility.
If you drive less than the average miles, ysign up for usage-based insurance and save up to 40%. Your driving behavior and habits are monitored to determine your car insurance premiums.
Raise Your Policy's Deductible
Raising your auto insurance deductible is one of the simplest ways to lower your premiums. The deductible is the amount you pay out-of-pocket for a claim before your insurance starts to kick in. The higher your deductible is, the less risk to your car insurance company and the lower your rates.
Consider how much you can afford to pay in case of a claim
Take the time to think about your finances and how much you're able to pay if theres an accident or claim. If raising your deductible from $500 to $1,000 would save you 15-40% on your premium, that may be worth the risk if you have an emergency fund to cover the higher out-of-pocket auto insurance costs. However, if $1,000 would greatly stain your budget, a lower increase is probably be better. Every dollar amount helps lower your rates.
Ask your insurance company for quotes at different deductible levels
Request specific quotes from your insurance provider at different deductible amounts, like $500, $750, $1,000 and $2,000. Check how much you save for each increase. You may find a “sweet spot” where the savings are good but the deductible is still affordable for you.
Consider bundling other policies or anti-theft devices for maximum savings
If increasing your deductible alone won’t save you as much as you’d like, look at other discounts. Bundle your auto policy with homeowners, life, or umbrella insurance. Ask about discounts for anti-theft devices like alarm systems, steering wheel locks or vehicle recovery systems. These combined with a higher deductible can lower your premiums significantly.
Raising your auto insurance deductible makes sense for many drivers and can put extra money back in your pocket each month. However, only increase to an amount you can comfortably afford in the event of a claim. A small amount of saving is better than none, so take advantage of any opportunities to lower your car insurance premium and keep more money where it belongs—with you!
Improve Your Credit Score
One of the best ways to lower your auto insurance premiums is to improve your credit score. Insurance companies view people with good credit as less risky to insure, so they offer them lower rates. Here are some steps you can take to boost your score:
Check your credit report for errors
Request a free copy of your credit report from AnnualCreditReport.com and look for any mistakes. Dispute them with the credit bureaus to get them corrected. Errors on your report can lower your score.
Pay down high-balance credit cards
High balances on your credit cards, especially if they're maxed out, hurt your score the most. Make extra payments each month to get them paid off, or at least keep balances below 35% of your limit.
Do not close unused credit card accounts
Closing old credit card accounts can damage your score since it lowers your credit utilization ratio and credit history length. Unless there's an annual fee, keep the accounts open. You can stop using the cards if needed.
Applying for a lot of new credit quickly can be a red flag for lenders and lower your score. Only apply for new credit when needed. Space out applications by at least 6-12 months if possible.
Set up automatic payments
Establish automatic payments for at least the minimum due on all your credit cards and loans. This ensures on-time payments each month which is the biggest factor in your credit score. Late or missed payments severely damage your score.
Saving on Auto Insurance? Save on Your Phone Bill as Well!
If you're trying to save on car insurance, EASY Wireless is here to help you save on other things as well. Like your phone bill. What if we told you that the average monthly phone bill in the US is $166?
Luckily -- we're offering FREE phones with FREE data bills to help you stop overpaying for phone service. If you're eligible for our free plans, here's what you could receive:
EASY Wireless Unlimited Plan
- FREE Unlimited Data
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- FREE SIM Card Kit and Activation
- Choose to Keep Your Number or Get a New One
To start with EASY Wireless, apply online by clicking the below:
Start Saving Today!
Or you can come to one of the EASY Wireless's retail stores, where our customer service agent will help you apply for your benefits.