Saving money on your monthly auto insurance bills is easier than you think. You don't have to shovel away money each month to have proper coverage on your vehicle. With some simple tweaks to your existing car insurance policy and shopping around for better deals, you could trim hundreds from what you're paying.
Whether it's your home, health, life, or your car insurance, this blog post will be introducing some tips for saving money on full-coverage car insurance. By following these easy tips, start keeping more money in your pocket where it belongs!
Shop Around for the Best Prices
First thing you should do is simply shop around to compare car insurance rates. Checking around different insurance companies is one of the best ways to save money on your premiums. Compare quotes from at least 5 insurers to find the most affordable rates.
Every dollar does count, so take plenty of time to explore your options. Compare quotes, check around for discounts, reassess how much coverage you need, and don't be afraid to negotiate the best deal. With some patience and persistence, you're bound to find an affordable policy that provides the protection that you need.
Check independent broker websites like NerdWallet or The Zebra where you can compare home or car insurance costs from multiple companies at once. These sites make it easy to filter by factors like coverage types, limits, and deductibles to find policies tailored to your needs. You may be able to save hundreds each year just by switching to a lower-cost insurer with similar coverage.
Ask About Discounts and Bundles
When it comes to saving money on full-coverage insurance, don't be afraid to ask about available discounts and bundled coverage. Bundling your home and auto policies with the same company can knock at least 10-15% off your premiums. Some insurers also offer discounts for bundling other policies like life or health insurance. It never hurts to ask about available bundling options and the potential savings.
Check For Common Discounts
Many insurers offer price breaks for:
- Safe drivers with no accidents or violations
- Students with good grades
- Members of certain organizations or alumni associations
- Military members and veterans
- Homeowners who install certain safety features like smoke detectors or home security systems
Don't assume you won't qualify for discounts. Do some research on your insurance company's website or give them a call to inquire about available reductions. You could be pleasantly surprised by how much you can save each year just by bundling or taking advantage of common discounts.
One of the best ways to lower your car insurance premiums is to increase your deductible. The deductible is the amount you pay yourself before your insurance kicks in. The higher your deductible, the less risk for car insurance companies and the lower your monthly bill.
Raising your deductible from $500 to $1,000, for example, could lower your car insurance premium by up to 30% for auto insurance and up to 20% for home insurance. The more you raise your deductible, the more you save. If you have a good emergency fund in case of claims, increasing your deductible is an easy way to achieve a lower premium.
Only use insurance for big claims
With a higher deductible, you only make claims for significant damages, so insurance companies reward you with lower rates. Small claims like a broken window or minor fender bender won't be worth reporting. Only file claims for more substantial damages to maximize your savings.
Shop around at different deductibles
When shopping for new insurance policies, get quotes at different deductible levels. Sometimes $2,000 or $5,000 deductibles provide big savings over $500 or $1,000. Check how much you can lower your premium for the comprehensive coverage you need. With a higher deductible, your premium may drop significantly.
Raising your insurance deductible means taking on more financial responsibility in the event of a claim. But for many policyholders, the premium savings over time more than offset the risk of a higher car insurance cost. Start paying lower premiums, only claim bigger damages and shop around—increasing your deductible can save you hundreds each year on insurance.
Review Your Policy Regularly
Reviewing your insurance policies regularly is another great way to save money on car insurance premiums. As your life changes, your insurance coverage needs may change as well, and certain types of policies can often become outdated or unnecessary.
Go over your policies with a fine-tooth comb at least once a year, ideally when it's time for your annual renewal. Look for any coverage you're paying for that you no longer need, like life insurance if you no longer have any dependents. You may also find options to decrease coverage amounts for things like home or auto insurance if the value of what you're insuring has decreased.
Maintain a Good Credit Score
Lastly -- maintaining a good credit score is one of the best ways to lower your insurance premiums. Insurance companies view people with high credit scores as more financially responsible, meaining they offer them lower rates. Here are some tips to improve your score:
- Check your credit report regularly for errors: Errors on your credit report negatively impact your score. If you find some, file a dispute to get them corrected.
- Pay your bills on time: Payment history makes up 35% of your credit score. Pay at least the minimum amount due on all bills before the due date. Set up automatic payments if possible. Late or missed payments severely hurt your score.
- Keep low credit card balances: The amount you owe, called credit utilization, makes up 30% of your score. Keep balances low relative to your limits, ideally 30% or less. Pay off entire balances whenever possible. High balances hurt your score the most.
- Avoid applying for a lot of new credit quickly: Credit inquiries comprise 10% of your score. Only apply for new credit when needed. Multiple applications in a short period of time can lower your score.
- Check with credit bureaus before canceling old credit cards: The length of your credit history contributes 15% to your score. Canceling old cards you no longer use can actually hurt your score by reducing your credit history length. Unless there's an annual fee, keep the card open.
By following these tips, you can achieve and maintain a good credit score, which in turn can save you hundreds per year on insurance costs. Keep monitoring your reports and scores regularly to ensure continued savings. Your wallet will thank you!
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We hope after reading this blog post you understand how to access high or full-coverage car insurance for less. However, EASY Wireless is here to help you even more! We may not be able to directly save you money on auto insurance, but we can help you save money in other things.
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