The cost of car insurance is always on the rise, which means finding ways to save money can be a challenge. But when it comes to keeping more of your hard-earned cash in your pocket, you don’t have to suffer as much as you may think. With some creative thinking and simple budgeting solutions, saving money on car insurance doesn’t have to feel like an impossible task.
Look for Discounts
Most insurance companies offer some type of discount, so it is important to ask your provider what discounts they have available. For instance, according to MarketWatch, Progressive offers several discount opportunities for its policyholders. Common discounts include safe driver discounts, multi-policy discounts, good student discounts, and more.
Good Driver Discounts
Good driver discounts can be a great way for drivers to save some money on their car insurance bills. Generally, these types of discounts are offered as an incentive to safe and experienced drivers who have built a good driving record over time.
To qualify for a good driver discount, you will typically need to have been accident-free and ticket-free for three years or more, and you must also meet certain other criteria set by your auto insurance provider.
Multi-Policy Discounts
A multi-policy discount is an insurance policy that has been designed to help customers save money. It provides a discounted rate for clients who purchase two or more policies from the same provider.
For example, if you have both auto and home insurance policies with the same company, you could qualify for a multi-policy discount.
Good Student Discounts
You may qualify for discounts if you (or any driver listed on the policy) is a full-time student with good grades. Most insurance companies offer a good student discount, and the amount of the discount will vary from company to company.
Generally speaking, this discount applies to those who are under 25 years old, maintain a grade point average of 3.0 or higher, and have completed their driver’s education course.
Install Safety Equipment
Installing safety equipment, such as airbags and anti-lock brakes, can qualify you for discounts. Most insurance companies offer discounts for cars that are outfitted with these devices, so it is worth looking into.
Understand Your Car Insurance Coverage
It is essential to comprehensively review your car insurance coverage to make sure it fits your driving needs and is providing you with the most cost-effective coverage. Many people don’t realize that depending on where you live, what type of vehicle you own, or if you have any previous claims that having the proper coverage can save you money on car insurance.
In addition, identifying gaps in what is covered with your current policy can be extremely beneficial, as it can help prevent a situation where you face considerable financial losses. Taking time to update and review your policy at least once a year is an excellent way to make sure that you are getting the proper level of coverage for your driving needs and budget.
Compare Quotes to Find the Best Price
Shopping around for car insurance quotes is a smart move for anyone looking to save money on their premium. By comparing different providers’ quotes, you can ensure that you are getting the most value for your money.
Taking some time to compare car insurance quotes can not only provide you with lower premiums, but also give you access to more coverage options and better customer service.
For example, one carrier may offer accident forgiveness while another provides discounts if certain safety equipment is installed in the vehicle. When it comes to car insurance, taking the time to shop around and compare quotes could pay off significantly in the long run.
Increase Your Deductible
By increasing the amount of money you are willing to pay out-of-pocket after filing an insurance claim, you will expand the kinds of coverage options available to you and ultimately decrease your monthly premiums.
It is important to note, though, that before deciding to increase your deductible, it is always wise to carefully consider the amount of savings versus the risk that such a decision may involve.
After all, if an accident occurs and you have filed a claim with an increased deductible, then getting the full amount covered afterward can require significantly more cash at one time.
Maintain a Clean Driving Record and Credit Score
Maintaining a clean driving record not only shows insurance companies that you are a responsible driver, but it can also save you lots of money on your car insurance! Insurance companies offer their policyholders discounts for avoiding accidents and traffic violations because it shows them that you’re a reliable motorist who is less likely to file a claim. Depending on your insurer, the type of discount offered might vary.
For instance, some insurers require multiple years of an accident-free record for a driver to qualify for the best rate. So if you want to save money on auto insurance and be covered in case of an incident, strive to keep your record as clean as possible.
Likewise, maintaining a good credit score can also have a positive effect on your auto insurance premium. Many insurers use your credit score as a factor when determining rates, so if you have a good credit score, you’ll likely qualify for a lower premium.
By understanding the ins and outs of car insurance coverage, knowing where to look for discounts, and staying vigilant about your driving record and credit score, you can save hundreds of dollars on car insurance in 2023. So get out there and start looking for ways to save on your car insurance premium today!