7 Easy Ways To Slash Your Auto Insurance Costs
Here are seven easy ways to slash your auto insurance costs.
The best way to save money on car insurance is by bundling it with other policies, like homeowners, life or health insurance. Contact your agent or insurer and ask about how you can package auto and home, auto and renter’s, or auto with any other of your existing policies. Bundling can help lower the cost of both items because they fall under a larger deductible pool.
If you're not bundling, shop around for better rates. You can usually save hundreds of dollars just by switching companies. If you're paying too much, your agent should be able to tell you what the average price for your policy type is in your area. If not, try this quote comparison tool.
If you have more expensive items to insure, it’s smart to take out a higher policy limit. For instance, if you have a $500 deductible on collision and comprehensive coverage but have $25,000 worth of coverage on an expensive car or bike – like a sports car or motorcycle – consider raising that deductible to match the value of the vehicle. For instance, a $3,000 deductible would save you $200 every six months under a $25,000 collision/comprehensive policy.
Likewise, if you’re insuring a home or other expensive property, take out an umbrella insurance policy to cover it. They can cost as little as $100-$300 a year for millions of dollars of coverage and can protect against lawsuits and fires.
If you own a more expensive car, bike or motorcycle, consider higher deductibles to save money on collision and comprehensive coverage. You can typically save hundreds of dollars in reduced premiums just by raising your deductible. For instance, a $3,000 deductible would save you $200 every six months under a $25,000 collision/comprehensive policy.
Higher deductibles also help mitigate the cost of claims while you’re still driving your car. The less money you have to pay out of pocket for repairs and replacements, the more affordable your insurance will be.
A good way to save on car insurance is to have one combined policy for multiple drivers. You'll only pay for the coverage you need, making it cheaper and easier to budget. If you have both an auto and a family policy, consider one combined policy. Under a family policy, just one insured driver can have $2 million in coverage.
If you're not paying enough for car insurance or you have no coverage at all, talk to your agent about affordable options such as deductibles or limits to lower the cost of your premiums. You can typically lower costs by 5% - 20% if you cannot afford to pay a high premium or $20 - $100 per month if you're uninsured.
Understand what the various coverages mean and how they can help protect you. Many people are overpaying for car insurance because they don't know the difference between liability, collision and comprehensive coverage.
It is also important to know the basics of car insurance. For instance, some car insurance policies will cover only a certain amount of money for a replacement vehicle if yours is totaled in an accident or stolen; other policies will pay up to the full value of your vehicle. Make sure you understand what your policy covers and how much money it will pay out in the event of a claim before signing up for a policy.
There are also things outside of car insurance that you can do to protect yourself from high prices. Try never to drive with an expired license or registration, and always claim all the discounts that you're entitled to, including student, multi-driver and veteran discounts.
If you have more than one car, consider taking out a policy for each vehicle rather than getting a household policy. You can usually save hundreds of dollars just by switching companies. If you're paying too much, your agent should be able to tell you what the average price for your policy type is in your area. If not, try this quote comparison tool.
If you have more expensive items to insure, it’s smart to take out a higher policy limit. For instance, if you have a $500 deductible on collision and comprehensive coverage but have $25,000 worth of coverage on an expensive car or bike – like a sports car or motorcycle – consider raising that deductible to match the value of the vehicle. For instance, a $3,000 deductible would save you $200 every six months under a $25,000 collision/comprehensive policy.
Likewise, if you’re insuring a home or other expensive property, take out an umbrella insurance policy to cover it. They can cost as little as $100-$300 a year for millions of dollars of coverage and can protect against lawsuits and fires.
If you own a more expensive car, bike or motorcycle, consider higher deductibles to save money on collision and comprehensive coverage. You can typically save hundreds of dollars in reduced premiums just by raising your deductible. For instance, a $3,000 deductible would save you $200 every six months under a $25,000 collision/comprehensive policy.
Higher deductibles also help mitigate the cost of claims while you’re still driving your car. The less money you have to pay out of pocket for repairs and replacements, the more affordable your insurance will be.
A good way to save on car insurance is to have one combined policy for multiple drivers. You'll only pay for the coverage you need, making it cheaper and easier to budget. If you have both an auto and a family policy, consider one combined policy. Under a family policy, just one insured driver can have $2 million in coverage.
If you're not paying enough for car insurance or you have no coverage at all, talk to your agent about affordable options such as deductibles or limits to lower the cost of your premiums. You can typically lower costs by 5% - 20% if you cannot afford to pay a high premium or $20 - $100 per month if you're uninsured.
Conclusion: To find cheap car insurance, you need to know what your state requires and what other drivers are paying. Enter your zip code and our site will help you find cheap car insurance within seconds.
More help from HII:
Driving a car is a privilege, not a right. If you drive a motor vehicle in the United States, it's up to you to make sure that you have passed state-mandated tests for driving, as well as hold proof of auto insurance (e.g., liability and comprehensive coverage) on yourself at all times – legally speaking, that is. Car insurance is required under certain states' laws.