Car insurance is typically required by law. Most people pick their favorite company or the one their friend or family member uses and then set about paying their policy every 6 months. People often keep the same insurance company for decades, but doing so can cost you extra money. There are several ways to save a bundle on car insurance. Try some of these strategies and see how much you can save:
-Bundle your car insurance with other insurance. I bundle my car insurance with my renter’s insurance by using the same company. That nets me $16 off my home insurance policy once a year and $37 off my auto insurance twice a year for a total savings of $90 a year.
-Look into a low mileage discounts. If you have a second car that is only used occasionally, or if you often take public transportation, you may want to look into a low mileage discount. This varies by insurer; in our case, we can’t put more than 7,500 miles on our car per year. If we stay within that limit, our annual premium, which is already quite low, is reduced by $106 per year. (This can be a bit of a pain. To prove I am within the allowed number of miles, I have to bring in a form yearly from my mechanic documenting my current mileage.)
-Take a defensive driving course. Contact your insurance company and see which defensive driving courses you can take to lower your premium. My insurer told me I could take a defensive driving course through the Secretary of State. I just need to bring the certificate of completion into my insurer’s office, and I will get 5% off my insurance premium every year.
-Be a safe driver. It goes without saying, but the longer you can drive accident and ticket-free, the lower your premium will be. We recently received a $100 discount because we have been accident free for 10 years.
-Pay bi-yearly or yearly. For your convenience, many insurers allow you to pay every month or every three months. However, there is usually a convenience fee tacked on. Instead, pay every 6 months or once a year; choose the option that doesn’t charge a convenience fee. If you have trouble coming up with the whole amount once a year, divide your annual payment by 12, and put that money away every month. Then when the annual premium is due, you will have the money set aside.
-Call around for the best rates. Every few years, take the time to call several insurance companies to compare rates. You may be surprised to find you can do better somewhere else. However, before making the leap to a new insurance agency, check their overall customer satisfaction rating. You won’t be saving much money if you switch to an insurance company that is not good about paying claims.
Most people don’t think about ways to save on their insurance premiums, but they should as there are many opportunities to reduce how much you are paying to insure your car. Look into a few of these ways to save, and you may find your annual insurance premium drop by hundreds of dollars. It is well-worth the time to make a few phone calls and perhaps take a defensive driving course.