If you want to legally drive in the United States, you need to have an auto insurance policy. It’s as simple as that. Unfortunately, many Americans struggle to afford both a car payment and a car insurance payment. Thankfully, the reality is that you are probably overpaying for your car insurance already. These are our five top tips to save money on car insurance.
Check For Discounts
There are all kinds of car insurance discounts available to the average consumer, but many people don’t know where to look for them. One of the most overlooked types of auto insurance discounts comes from a rather unexpected place: your employer.
That’s right, many employers actually offer a substantial discount if you purchase a policy through a preferred provider. Of course, not every employer does, but it can’t hurt to ask!
Your employer isn’t the only way to save money on car insurance. Bundling your car insurance with another type of insurance such as a homeowners policy can bring major savings for your monthly bill. Having multiple cars insured may also provide additional savings and discounts.
The savings don’t stop there when it comes to discounting your car insurance because there is a range of things you may have never considered that can provide you with a monthly discount including:
- Being a student with good grades
- Paperless billing
- Senior citizen discounts
- Military discounts
Car insurance discounts range from the equipment that your automobile possesses to how you enroll and even if you are a particular demographic such as a student or senior citizen. Talking with your insurance agent will help you understand your car insurance provider and save money on car insurance.
Build Your Credit
One of the primary factors that insurance companies consider when determining an auto insurance premium is the applicant’s credit score. The better your score, the lower your premium will be.
Take the time to closely monitor your credit and be sure to take care of any factors that may be hurting it before applying for an auto insurance policy. A higher credit score is always going to save you money when it comes to insurance.
Building your credit can be accomplished in many different ways and talking with your financial advisor/institution can create a pathway for a stronger credit score. Luckily, while credit scores may seem like a bit of a mystery to many, you can monitor your credit and receive advice on things you can do to improve your score from one of these reputable, free credit score monitoring companies:
Many people don’t realize that their driving record has a big impact on their car insurance premiums. If you have a lot of traffic violations, you are going to see a serious hike in the cost of your car insurance. By the same token, if you have a history of safe driving you’ll probably save a little bit of money. Most insurers offer a “safe driver” discount, provided you go a certain amount of time without any violations.
Looking to take things a step further? A clean driving record is a great way to gain additional discounts, however, so is taking classes that make you a better driver. Many car insurance companies offer discounts to their customers who take courses such as defensive driving classes or driver training. The more you learn the more you save money on car insurance while becoming a better motorist.
The same rules you learned on the playground still apply today. “Safety first” is a motto that will serve you well, particularly in the insurance world. When it comes to car insurance, that means that splurging on a car with extra safety features could save you money in the long run.
For example, cars with a passive security system tend to cost less to insure. The slew of safety features available in vehicles these days is truly mind-boggling. The more safety features your vehicle has, the less risk it poses to the insurer, which means your monthly premiums are going to cost less. For example, vehicles with anti-lock brakes are a great candidate for a discount.
Equipment-based discounts can also extend into features such as anti-theft devices that would make it more difficult for your vehicle to become stolen. Remember, the insurance field is all about managing risk. The less risk you present to your car insurance provider, the more discounts you may be eligible for.
Do Your Research
Finally, as we suggest when it comes to any type of insurance policy, do your research! Take the time to shop around, and don’t be afraid to call an insurance agent and ask questions. Compare different auto-insurance quotes and find the right insurance policy for your lifestyle and your budget.
It’s illegal to drive in the United States without an active car insurance policy. That means that most Americans need to invest one. If you need a new policy, or simply want to inquire about finding a more affordable one, reach out to the staff at TGS Insurance.