If you’re a careful driver, you may feel like your insurance payment is a huge waste of money. Of course, you want to protect yourself, should an accident occur, but monthly car insurance payments rack up over time. They can leave you feeling drained of money, and bitter toward the insurer.
But you have to have insurance. Federal law mandates that. However, you don’t have to overpay for insurance. Employ some of these strategies to save some money on your monthly auto insurance bill.
Increase Your Deductible
“A deductible is the out-of-pocket money you pay before your insurance coverage begins,” says a rep for Acceptance Insurance, who offers a variety of auto insurance coverage plans. “It’s typically $250 to $1,000 per claim. To reduce your monthly payment, choose a higher deductible.”
Increasing your deductible will decrease your monthly bills, but you’ll end up paying more if you have an accident. If the chances of your having an accident are low, go ahead and take advantage of the lower premiums with an increased deductible. If you live in an area that is prone to volatile weather, such as blizzards or flooding, it may not be a good idea to risk increasing the deductible.
Take Advantage of Car Insurance Discounts
There are all kinds of car insurance discounts available to people. According to Kelly Blue Book, you could save anywhere from 15 to 40 percent when you employ a car insurance discount, so make sure to inquire about discounts by calling your insurance provider’s customer service telephone number.
Discounts are often offered to:
· Senior citizens
· Students with good grades
· People with multiple vehicles
· People in certain professions (doctors, RNs, dentists, and more)
· People who own cars with increased safety features
Stable Credit = Fewer Accidents = More Savings
Insurance companies have done their research and determined that people with good credit have fewer accidents. Many insurance companies will run your credit before they give you a quote, often factoring in your good score for some major discounts.
Switch to a Less Expensive Insurer
Go ahead and shop around. Comparing auto insurance carriers can ensure that you end up with the absolute lowest rate. Don’t accept what a single company tells you another company costs. Take the initiative and go ahead and shop around for yourself. Compare those rates, choose the cheapest one, but don’t sacrifice a quality plan for a discounted rate. Keep everything well balanced.
Sticking with an expensive insurer just isn’t smart economics. If your insurer is overcharging you, there’s another company waiting to give you a fair, or discounted, rate. It’s okay to explore other insurance companies because that’s what they’re there for. You deserve the best rate, and shopping around ensures you’ll get the rate you deserve.