It’s time to have a talk — about how to save money on car insurance. It’s not glamorous, but it’s a topic every driver must deal with. If you’re lucky, you’ve found a great rate and don’t plan on budging. For others, those countless speeding tickets or unfortunate accidents have caught up to your driving record and your car insurance policy.
On average, drivers spend about $937 annually on car insurance. The costs can add up quickly, especially if you add extra coverage to your plan. While there are several factors that influence your premium, there are also ways to help ease the burden of a high monthly payment.
If you are a driver who’s landed in the risky category, then it’s likely you are dreading your car insurance bill each month and wishing you knew how to save money. To overcome this, we’ve gathered a list of money-saving insurance hacks to help every driver reduce their premium and work towards a lower annual cost.
Check out our top money-saving insurance hacks for your car insurance policy:
Shop around every six months to save money on car insurance
Due to high competition, insurance rates are constantly changing. The premium you secure one month could be better or worse depending on the time of year, environment you live in, and current driving record. For instance, Floridians receive higher insurance offers between the months of August and September when hurricane season is at its peak.
This means, there is always an opportunity to cut your premium cost by shopping around for car insurance. For once, shopping can help save you money versus putting a dent in your wallet. By comparing car insurance online, you can take advantage of comparison sites that update rates daily and allow drivers to narrow down their search. These sites even provide helpful insight on how to shop for insurance at every stage of life.
Age is just a number unless it means big savings on your insurance.
— The Zebra (@TheZebraCo) December 16, 2020
Seek out discounts
There are several discounts available for drivers of all ages. Sometimes you won’t even know about these discounts unless you ask. In an ideal world, every insurance agent or company would apply these discounts automatically, but it is helpful to research which discounts will apply to you and your family before making a decision on an insurance plan.
Whether you’re receiving the help from a professional or doing the work yourself, it is important to seek out every opportunity to save money. Here are the most common discounts available:
- Low income
- Defense driver
- green/hybrid car
- Good student
- Senior discount
Consider Raising Your Deductibles
You might equate higher deductibles with costly premiums. Well, that’s not always the case. If you shop around for car insurance — and trust me, there are many options to choose from, you will end up finding plans with higher deductibles at a price that won’t break the bank. A higher deductible can result in a percentage discount off your insurance plan and help you significantly if you are a driver with a history of insurance claims.
This hack works well if you find yourself declaring various small claims a year, as those costs add up greatly without you realizing.
Install car security
There is an opportunity to lower your annual insurance expenses by installing anti-theft devices on your car. These days, most cars come equipped with security settings, but drivers can now take it to the next level with the Ring Car Alarm. Ring has developed one of the most user-friendly options for surveilling your vehicle and keeping watch over the increase in theft. For insurance companies, improved safety equals better protection.
Choose your car wisely
When you step foot into a car dealership probably the last thing you are thinking of is your future car insurance rate. Who cares about insurance when you are blinded by shiny new toys. Hate to break it to you, but the make and model of your future car will influence your insurance rate. Therefore, if you’re trying to keep monthly expenses low, I would contact your insurance provider or perform independent research to find out which makes and models will adversely affect you.
When it comes to lowering your car insurance premium, you are in the driver seat. You have to do the legwork in order to see some results, but these money-saving hacks are as sound as a dollar. If you are tired of nickel and diming every month to cover your insurance premium then it’s time to make a change.
My advice: be on the lookout. It seems tedious to check insurance rates every six months, but it can truly save you money in the long run. Remember to keep in mind that certain makes and models can greatly affect your insurance policy as well. The next time you go shopping for a new car, keep insurance in mind.