Welcome to Money Saving Monday where we remind ourselves that community is the greatest money saving resource we have.
Each month, you’ll have a chance to win one of two $15 Amazon gift cards. Simply leave your tips and suggestions, and if it is a top pick of the month, you’ll get a $15.00 gift card.
By the way, with just a handful of comments each day, you’ve got a great opportunity to win this prize.
13 Ways to Save Money on Car Insurance
- Shop around for a better rate – Many times it can be easy to just stick with the same company year after year. However, if you shop around, you may find that you can get comparable coverage for a much lower price.
- Increase your deductible – This is the simplest way to reduce your insurance premiums. Just make sure that you have enough in your emergency fund to cover your out-of-pocket responsibility in the event of an accident.
- Drop any unnecessary coverage – If you are financing your car, then the bank requires that you maintain “full coverage” on the car. However, once you pay the loan in full, that requirement is gone. It may make sense (especially on an older car) to drop collision coverage and just increase the amount in your emergency fund. Also, make sure that you are not paying for medical coverage that is already included in your health insurance.
- Combine policies – Make sure all of your policies are with the same insurer. This includes homeowner/renter, personal property, all cars, and even life insurance. Most companies will offer a very nice discount for doing so.
- Keep a clean driving record – Having points on your driver’s license can cause your rates to skyrocket! In some cases, even if you avoid points on your license (by making a special agreement with the prosecutor), your insurance rates may still go up. Also, some companies will offer a discount if you avoid an accident or ticket over a certain period of time (usually 3 years).
- Look for professional discounts – By being a member of certain professional organizations, working for certain employers, and even being a member of AAA or AARP, you can qualify for a discount in coverage!
- Earn good grades – Students who earn good grades can usually qualify for a discount on auto insurance. Call your provider to see if they offer this discount. If not, see tip #1.
- Drive fewer miles – If the total miles that you drive in a year is below a certain amount, then most companies will offer you an additional discount!
- Drive a safe car – Many insurers will give discounts for having certain safety features on your vehicle. These include anti-lock brakes, driver and passenger side airbags, and even automatic seat-belts. Also, using a club and installing an alarm can reduce your rates as well.
- Take a defensive driving course – Taking a defensive driving course reduced my insurance premiums by 5%. Check with your insurer to see if you can receive similar savings!
- Maintain a good credit score - Most insurers will pull your credit report when calculating your rates. A lower score will signal that you are more likely to file an insurance claim – which will increase your premiums!
- Buy a “safe” vehicle – Insurance companies rate vehicles by their safety and how often they are stolen. If you own a risky vehicle, then prepare to pay big! This includes make, model, and color – so call your insurance company before you purchase a vehicle and make sure you take the safe bet.
- Pay your premium in full – Many insurance companies will allow you to pay your annual premium in installments. You can break your payments down from annual to monthly and everything in between. However, with every additional payment, the company will charge a fee for the service. If you can, pay it all up front and avoid these convenience fees.
Take a minute and see if you could get cheaper car insurance at Geico.
What are your tips for saving money on car insurance?
Remember, if you leave a comment you have a chance to win one of two $15 Amazon gift cards.