Don’t ever sit down and do the math on how much money you’ll be spending in a lifetime on car insurance that you most likely will never need to utilize, it will be frustrating. Is there anything we can do about having to shell out thousands of dollars on insurance policies? There are a few tips that you can live by to earn yourself a cheaper rate, and if you follow them you’ll at least have a better grasp on what you’re paying for, and ditch the add-ons that you don’t require.
1. Price Your Potential Insurance – Perhaps you’re in the market for a new car or truck; have you considered what the insurance costs will be on your new wheels? Most don’t factor this in, then they are all too surprised when they need to begin coverage on the car. Call or get a free quote online for the model and year of the vehicle you wish to purchase before being shocked once you bring the car home.
2. Shop Around – There is no such thing as a basic rate for car insurance policies, therefor private agents can charge just about anything they like to those willing to pay their amounts. Always do some research on policies and their average costs before committing to the first company you get a quote from.
3. Consider Higher Deductibles – No one wants to ever do this, but it all pans out in your favor. Did you know that just by increasing your deductible to $1,000 you can save roughly 30-40% on your policy? Why waste that money? Especially if you never have a claim? Put 1K in a savings account in the event you ever have a claim, or start saving to have that 1K so you don’t have to lose it all in one chunk if that’s your concern, but paying an extra 40% in rates over time is a lot of money to pour out.
4. Adding Minors – Every parent’s worst nightmare is when their teenager starts driving. It gets even worse than just the average safety controls most are worried sick over too as adding a brand new driver to your policy is asking for higher rates. They are a high risk, no matter how you look at it. If your teenager is only using your car once per month, why add them to your policy? If they are using it several times per week then you have no choice, but to pay all the additional fees for a once in a blue moon trip to the mall is foolish.
5. Monitor Your Credit – While how you drive literally has nothing to do with how your credit is effective, your credit now plays a role in your rates. If you have dreadful credit, odds are most insurance carriers are going to charge you extra for covering you. Not exactly fair, but those are the current rules.
Repair bad credit, use your car less and take public transport to lower the miles covered on your policy, or get a car that is more economical to insure; these are all useful when trying to save money on your next policy.