Did you know that you can cut your auto insurance premiums? The number of miles you drive affects your premium. The more you drive, the higher your risk of a collision. If you have a lower-mileage vehicle, you should report this information to your insurance company. Besides saving money on gas, driving less can also lower your premium. Several ways to cut back on your driving include carpooling, combining errands, and even biking to work.
Another way to save money on your car insurance is to increase your deductible. If you only have a few thousand dollars, you can opt to reduce your deductible to make it more affordable. This way, you’ll save about $500 over the years. However, be sure you understand your insurance policy. Do not cut coverage just because you’re on a budget. Rather, try to find the right balance between cost and deductible.
Getting multiple quotes is another great way to save money on your car insurance. Teen drivers’ insurance premiums vary significantly, and by comparing rates from different providers, you can save hundreds or even thousands of dollars. Using defensive driving techniques when driving your teen can also help you save money. For example, the company Mercury Insurance has created an online program called the Drive Safe Challenge. This program provides tips, instructional videos, and quizzes to help teens reduce their risk of getting into an accident.
Another way to cut down on your auto insurance premiums is to stick with the same insurance company. Many insurers offer loyalty discounts, but you should check the savings you receive before you switch. Some insurers increase their rates by 25 percent and offer a smaller loyalty discount, so be sure to read the fine print. It may be worth it to try to change insurers, but make sure you’ll still be getting the same quality of coverage.
Always get several quotes from different insurance companies to compare their rates. You should begin by contacting major insurers like Allstate and Liberty Mutual. Simply enter basic information, and a system will compare quotes from multiple insurers. Once you’ve chosen a few quotes, you should contact the company to order your policy. After all, the savings will make the process much easier. So, make sure to read the fine print and shop around to find the best auto insurance for you.
Another way to save money on your auto insurance premium is to decrease the number of add-on protections that you have. You can lower your monthly payment by dropping collision and comprehensive coverages if you’re not driving a lot. If your car is worth less than $16,000, experts recommend that you drop these coverages. If you have an older car, you can also save money on auto insurance by dropping comprehensive and collision coverage. Generally, most lenders require collision and comprehensive coverage when you finance your vehicle. However, if you pay off the loan, you can drop this coverage as well.
Moreover, you can also consider bundling your policies. Many insurers offer discounts if you purchase multiple policies from them. This way, you can manage all your premium payments and claims in one place. In addition, you can save more by combining your auto insurance and homeowners insurance. Many insurers offer discounts for multiple vehicles and multiple policies. Ask your insurance agent about discounts for multiple policies. This way, you will get the best possible rates.