You probably don’t think of car insurance as being something that could be budget-friendly. However, by doing some research and shopping around, you can save money on your policy. Furthermore, there are plenty of ways to save even more money on your car insurance premiums. Here are six insider tips to help you reduce the price of your car insurance policy. Whether you own a new or used car, drive frequently for work or school, have clean driving records, and/or live in a safe area all affect how much you pay for auto insurance. But it doesn’t stop there – there are numerous other factors which will also lower the cost of your premiums. Keep reading to find out how!
Check for Discounts
Whenever you’re trying to save money, it makes sense to begin by checking for discounts. Some insurers offer cash-back rewards, special discounts, and lower rates for students, the elderly, those who drive less, and those who are married (to each other – not other drivers.) If you’re a member of a professional organization, you might also be eligible for reduced rates. How old you are and what kind of car you drive also factor into your premiums. Younger drivers typically pay more than older ones, and SUVs and trucks cost more than economy cars.
For example, drivers who enroll in a program that tracks their driving habits and gives them feedback might pay less for their auto insurance. Although some insurers charge a monthly fee for this program, others provide the service for free. If you don’t know what discounts you’re eligible for, call your insurance company and ask for a free quote.
Shop Around
It’s always a good idea to shop around for car insurance, as rates vary significantly from company to company. While you may have had the same insurance provider for years, it’s worth checking out other companies to see if you could be saving money by making a change. You can start your search by entering your details into a comparison site like Policygenius.com or getting a quote from an online insurance broker.
Shopping around doesn’t just mean getting an estimate from one company – it means getting quotes from several providers to see who offers the best price. The best way to save money on auto insurance is to get quotes from different companies and use that information to negotiate a better rate with your existing provider.
Bundle Your Policies
If you have multiple policies with the same provider (i.e., a homeowner’s and car insurance policy), the company may offer you a discount for bundling all your policies together. Many providers offer this as a way to encourage customers to stay with them. For example, if you have a homeowner’s policy with State Farm, you might be able to get a discount on your car insurance if you bundle both policies together. If you’re currently with one company and considering switching to another, one easy way to get a better rate with the new provider is to bundle both policies together.
Find Out if You’re Overpaying Right Now
It can be difficult to determine whether you’re overpaying for car insurance (or any other type of policy, for that matter). There are a few signs that indicate you might be paying too much for your coverage, though. If a company is always offering you discounts, you might be overpaying. If you’re constantly receiving telemarketing calls from your provider, you might be overpaying. If you don’t think the service you’re receiving is worth the money you’re paying, you might be overpaying. A quick and easy way to determine if you’re overpaying for your car insurance is to run a quote comparison with a few different providers. If you’re paying too much right now, you can use that information to negotiate a better rate with your provider.
Roll Over Your Credit
This trick works especially well if you have a high credit score. If you have an outstanding balance on your credit card, consider rolling it over to help boost your credit score. The same can be said of your car loan or any other installment loan that you’re making payments on. All of these things affect your credit score, and you can “roll over” your credit by making the same payment each month for as long as you keep the debt on your credit report. If you have decent credit, you can use your credit card balance to secure a low-interest car insurance rate. When you apply for an auto insurance policy, your credit score will be checked. If you have a good credit score, the insurance company will offer you a lower interest rate for your car insurance policy. If you have a lower rate, you can “roll over” the amount you would have normally paid per month on your credit card into your car insurance payment. This way, you’re paying off your car insurance policy each month, but at a lower interest rate.
Negotiate By Going Independent
The best way to save money on auto insurance is to go with an independent agent, as opposed to dealing with an insurance company directly. Independent agents have access to multiple insurance carriers, so they can shop around to find you the best rates. Furthermore, working with an independent agent is usually easier and cheaper than trying to negotiate a lower rate with an insurance company directly. If you’d like to see if you can get a better rate, start by getting three quotes from different agents. If you’re not sure which companies to go with, you can use online tools like Policygenius.com to find agents in your area.
Conclusion
Car insurance isn’t the most exciting topic in the world, but it’s important to understand how it works in order to save money. These six insider tips will help you reduce the price of your car insurance premiums. To begin, check for discounts, shop around, bundle your policies, find out if you’re overpaying right now, roll over your credit, and negotiate by going independent. You can also roll over your credit, negotiate by going independent, and negotiate by going independent.
