Car insurance can be confusing and expensive. You want to be sure you have adequate coverage in the event of an accident but there is also the potential to lower your premiums. We asked Ava Lynch, licensed insurance agent at The Zebra, an insurance search engine and quote comparison marketplace, to provide some tips and advice on ways to save.
1. Shop Around for Insurance
Get quotes from multiple insurance companies. You’d be surprised at how much variability there is in insurance premiums and among different companies based on the risk they are willing to assume. By getting multiple quotes, you may be able to get a lower rate even if you keep the same coverage. It’s smart to shop around every 6 months or year because certain life events, such as graduating from school, getting married or moving, should be catalysts for reexamining and realigning your coverage, service needs, and costs.
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2. Avoid Lapse in Coverage
Whether you want to buy a new car, update the coverage on your policy, or switch insurance companies, it’s super important to keep continuous coverage – that is, make sure you have your new policy in place before your old one is up. Insurance companies view drivers who are already insured as more financially responsible so they offer a substantial discount if you’re already insured. Rates generally drop at 6 months, 1 year and 3 years.
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3. Adjust Your Deductible
Consider raising your deductible from, say, $500 to $1,000. Yes, you’d have to pay more in the event that you file a claim, but you’ll have a lower premium which would especially benefit you if you maintain a safe driving record and don’t have to file a claim.
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4. Combine Policies
If you have multiple policies, such as a second car or a homeowner’s policy, consider bundling all your policies with one insurer as many insurers offer a multi-policy discount. Just know that your policies will likely still have separate payments and start-end dates, so make sure the convenience and discount are worth it before you bundle.
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5. Look for Discounts
There are certainly plenty of discounts available, such as a good student discount or a defensive driving discount, but don’t get sidetracked by them or assume they’ll have a huge impact on your rate. If you have a terrible driving record, no discount will make your rates low. Do the research so you can answer: How much is this particular coverage from this insurance company going to cost me?
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6. Go Paperless or Set Up Automatic Withdrawals
Incentives for going paperless with your statements or arranging for automatic withdrawals to help the simplify the payment process may be available. Be sure to ask your agent.
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7. Pay in Full Upfront
If you can pay in full before the policy goes into effect, ask if there is a discount. Some insurers may offer a reduction for your full payment.
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Good luck and let us know if any of these tips save you money this year!
