Looking to save money on your car insurance? While several personal factors (age, driving history) will influence how much your insurance costs, these simple tips will help you reduce your insurance bill and save some cash. If you truly understand how your insurance works and what your options are, you can find several ways to reduce your bill. Read our tips carefully and think about your personal situation – it’s pretty likely that several of these will apply to you.
1. Choose the right vehicle
It’s easy to check on the insurance costs for a particular make and model before you purchase the vehicle. Obviously, insurance will cost more for new cars, and the more expensive the car is, the more your insurance payments will be. One of the big benefits of buying a used car from Lone Star Cars is that your monthly insurance payments will be significantly lower than if you purchased a new car from a franchise dealership.
2. Choose a higher deductible
Most people shy away from this option, but you can actually end up with huge savings if you simply choose a higher deductible. Yes, your deductible will be higher, but the money that you save on a monthly basis could more than make up for the higher deductible. You could save as much as 40% on your monthly bill by changing from a $250 deductible to a $1500 deductible.
3. Cut back on your coverage
On older cars, you could drop your collision or comprehensive coverage. Many times, on older cars, people end up paying more for insurance than the car is actually worth. Take your monthly premium and multiply it by ten. If the car is worth less than the resulting amount, you probably shouldn’t have collision or comprehensive coverage. The average policy holder makes an average of one claim every decade – and a total vehicle loss is reported only once every 50 years. That just means that most people are paying for comprehensive coverage, but they’ll never have to claim a total loss.
4. Shop prices at other insurance companies
Like the lady says on the commercial, you should always check out the prices of competing insurance companies. Quoted prices will range all over the board when you’re asking for quotes, so it’s smart to shop around. Simply choosing the right company could save you hundreds of dollars a year.
5. Watch your credit score
Like most other purchases, your credit rating will affect how much you pay for auto insurance. If you’ve got bad credit, you could pay as much as 50% more than other policy holders. If your credit improves, it’s always smart to shop around and see if your rates could decrease due to your lower credit score.
6. Take advantage of discounts
Call your insurance company and make sure that you’re benefiting from every possible discount you qualify for. Insurance companies offer multiple discounts for many different reasons – from safety equipment to low mileage discounts. You’ll need to ask your insurance company about possible discounts to make sure you’re taking advantage of any that apply to your vehicle and situation.
7. Don’t let your coverage lapse
If you decide to switch insurance companies, make sure your coverage doesn’t lapse during your transition. If you’ve had a coverage lapse, your premiums will skyrocket, and many times, it can be extremely difficult to find a provider who will underwrite your policy if you don’t have current insurance coverage.
Follow these simple steps to save money on your monthly insurance bill and you could potentially save hundreds of dollars a year. If you have any other questions about insurance coverage for a vehicle you’re thinking about buying, please don’t hesitate to call us for details at 972-612-2323. Our knowledgeable staff will answer any questions you might have, or they’ll help you know what to ask your insurance carrier.