Knowing about the most interesting car insurance hacks can aid you in saving money on the cost of your monthly premiums. Aside from requesting available discounts from your provider, try a few of these ideas to put some extra money in your pocket each month.
What Is a Car Insurance Hack?
Automobile insurance hacks are ways for you to reduce the expense of your car insurance. Car insurance is obligatory in the majority of states and many of us pay monthly premiums. Car insurance is relatively expensive, and the insurance provider will determine the cost of insuring you using these factors
- Your age and gender
- Where you reside
- Your driving history
- If you are married or single
- Your credit score (some states prohibit this)
- Where your car is parked
- What do you use your car for
- How many miles do you drive on the average
Top Car Insurance Hacks to Save Money
Maybe you’ve had some unexpected expenses, lost your job, or just need to save some money. Try these hacks to reduce your insurance premiums.
1. Raise Your Deductible
If you are a defensive driver or perhaps drive a limited number of miles, you may want to raise your deductible. The deductible is what you will pay out of pocket if you have an accident for repairs. The higher your deductible is, the lower your premium will be. Before opting to raise your deductible, consider your risk level as a claim will cost you more.
2. Change Your Coverage if Appropriate
While liability insurance is usually required, collision and comprehensive car insurance coverage are optional. Consider types of car insurance. You may want to forgo roadside assistance, rental coverage in case of an accident, new vehicle replacement, or any other extra endorsements that you are paying for.
3. Bundle Insurance Policies
If you have purchased homeowner’s insurance, renter’s insurance, boat, or motorcycle insurance, consider buying all your policies from the same provider. This should entitle you to a mega discount on the policies.
4. Pay for Your Policy with a Single Payment
Whether you have a 6-month or 12-month policy, by paying for it in a lump sum, your provider may offer you a significant discount upfront. With monthly premiums, there are generally fees attached and these can add up to considerable annual costs.
5. Engage in Comparative Shopping
Doing a bit of comparative shopping is one of the best ways to save money. Not only can you find a provider for your budget, but you will be able to compare the coverage offered. Plus, if you find the same coverage for a cheaper rate, you can inform your provider and they may match it. It won’t hurt to try. It’s worth it to check rates once or twice annually as providers will adjust. You may find that a competing provider offers better discounts.
6. Consider the Car and Safety
The installation of certain safety devices can translate into hefty discounts. Defensive driving courses, safe driving monitors, and anti-theft systems will reduce the risk of claims and hence your premiums as well. Also, the type of car you drive will make a difference as some cars are more expensive to repair and this can drive up premium costs.
7. Consistent Coverage Should Be Maintained
If you miss premium payments or permit a lapse in car insurance coverage, a provider will generally charge a higher fee when you resume coverage. Never drive without insurance or this can have expensive consequences. If you are stopped by police without insurance, your license may be suspended, and you may have to pay a heavy fine. You will also answer for damages directly if you have an accident.
8. Consider Discount Eligibility
Always ask about discounts that are available to ascertain if you are eligible. There are a wealth of discounts out there. Some popular discounts include
- Defensive driver – Take a defensive driving course to lower your rates.
- Federal employees – work for the government? You may get a discount.
- Good students – if you are a new driver with a high GPA, you can be rewarded with a lower premium.
- Military – members of the armed forces often benefit from special rates.
- Multi-vehicle – If you insure several family vehicles on the same policy or have several policies, perhaps they can be bundled for a significant discount.
- Organizational memberships – many organizations offer group discounts for their members.
Insurance Hacks to Save Money
Although several states do not permit insurance providers to consider your credit score, if you live in a state that does, it’s worth it to improve it. Even a point or two can make a difference in your premium.
Before you risk reducing your coverage to get a better rate and save money, consider these hacks to keep your expenses down. Re-evaluate your policy and coverage when it expires and do some comparative shopping to get the lowdown on competing offers. It can translate into substantial savings.