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Feb 15

13 Tips and Ideas for Cutting Car Insurance Costs

Reading Time: 3 mins

We all want to be able to save money on our car insurance costs. The premiums can be high if you are taking the first policy offered to you. At one time that may have been the most efficient way of obtaining coverage, but that is no longer the case. Internet, and Fintech, has made it easy for you to use online platforms to conduct searches. Comparison sites do all the legwork for you, leaving you to choose the policy that suits your needs the best.

With that in mind, lets go over a few things that you can do that will help you cut costs, which will put more money into your pocket.

  1. Vehicle Type – It may come as a surprise to you, but insurance companies will penalize you for certain types of vehicles and will give you breaks on others. A good rule of thumb to remember is older rides (that are not classics) will be cheaper, and ones that are filled with safety features will be less expensive.
  2. Discounts – If you have more than one car you can bundle them together, which will save you some money. You also need to go through the rest of your insurance portfolio. The more that you combine into one account, the cheaper all your premiums will be.
  3. Safety – When you first go to get your license you were told, over and over, to drive defensively. Driving like you are in a racecar will not get you there any faster, and it will increase your chances of getting into an accident, or receiving a ticket, which in turn will increase your insurance costs.
  4. Compare – Use a comparison platform to compare numerous options and costs. Never assume that the cheapest is the best, though. Read through the offers and compare all aspects of the car insurance quotes with the others.
  5. Classes – One way to decrease the insurance costs is to take some classes. Make sure that you finish a drivers education course while you are in school and take some defensive driving classes that should be offered in your area.
  6. Credit Score – You have heard this over and over since you were able to walk. Credit scores are how the world revolves, when it comes to anything that has a financial aspect involved. Keep an eye on yours, do what you can to increase it, and pay your bills.
  7. Teenagers – If you are still young you can bundle your policy with your parents. It will lower your rates according to how well your parents’ policy is.
  8. Drivers – If more than one driver is going to be insured on your policy it could affect you in two separate ways. A good driver that is older will lower your premiums, and a driver that is young or bad will increase your costs.
  9. Safety Devices – If you have installed any safety devices that are not standard equipment check with your carrier. It may give you a discount. Anything that makes the vehicle safer, or that will decrease the injuries during accidents, should give you a discount of some kind.
  • Deductibles – The higher that your deductible is, the lower your costs will be. Be careful when doing this, though, because if you are in an accident you will have to dish out some money from your own pocket before the insurer will pay off any claims.
  • Extras – You should always go through your policy and remove things that you do not need. There will always be things added on that you may never need, or that you do not want. Remove them from the contract.
  • Yearly – If at all possible, pay your premiums by the year. It may be convenient to pay a monthly amount, but it will cost you more by the end of the year.
  • Transportation – If you are in an area that offers a transit system, you may want to consider using it instead of having your own car. It will save you on insurance, upkeep, and fuel.

That is about all there is to saving on your auto insurance costs. It is important to remember to compare companies in your area. Use an online platform to decrease your research time. Pick the best fit for you, at the best price possible.

 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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