Obtaining and maintaining car insurance can be costly, but there are ways to save money on the car insurance you need. Following these five tips to lower car insurance costs will help you save money and keep your car insurance premiums as low as possible.
Pay Your Premiums In A Lump Sum
It will cost you more to pay your car insurance premiums in monthly installments than it will to pay them in a lump sum because many insurance companies charge extra to cover the cost of administering monthly payments. Paying your car insurance payments in advance could save you several hundred dollars a year.
Raise Your Car Insurance Deductibles
Increasing the amount you agree to pay as a deductible for covered incidents can also lower car insurance premiums. Car insurance companies reward those willing to take more financial responsibility for a claim by reducing the amount those customers pay for their coverage. Under current rates, raising your deductibles from $500 to $1000 can save you as much as 10 percent on the cost of your insurance policy.
Inquire About Discounts Regularly
Insurance companies often have a large list of car insurance discounts that could save you money on your premium costs. These lists change all the time, along with personal situations, so you may be entitled to a discount now that may not have been available to you when you signed up. Ask for your insurer’s list of discounts every time you renew your insurance to see if there are any money saving gems you qualify for.
Obtain Multiple Policies From The Same Provider
Many insurance companies give reduced prices to customers that obtain multiple policies from them. Insuring your cars and home through the same insurance company could save you as much as 15 percent off of the cost of each policy. However, this is only a deal if the policies are equivalent in cost and coverage to similar policies from other insurers.
Shop Around For The Best Prices
The internet has made it very easy to shop around for the best car insurance prices. There are many websites available that will let you enter some basic information into their search portal and return the estimated cost of insurance from several different companies. This feature can also be found on many insurance company websites. There is no penalty for switching from one insurance company to another, so shop around for the best prices before it is time to renew your policy.