Car insurance is an essential expense for most drivers, but it can be costly. The average American driver pays $1,674 per year for car insurance, according to the Insurance Information Institute. However, there are a number of ways to save money on car insurance without sacrificing coverage.
Compare quotes from multiple insurers
The best way to find the cheapest car insurance is to compare quotes from multiple insurers. You can do this online or through a local insurance agent. Be sure to compare quotes from a variety of insurers, including large national companies and smaller regional companies.
Ask about discounts
Most car insurance companies offer a variety of discounts. Some of the most common discounts include:
- Safe driver discounts: If you have a good driving record, you may be eligible for a safe driver discount.
- Multi-policy discounts: If you have more than one policy with the same company, such as homeowners and car insurance, you may be eligible for a multi-policy discount.
- Good student discounts: If you are a student with good grades, you may be eligible for a good student discount.
- Military discounts: Active duty military members and veterans may be eligible for military discounts.
Be sure to ask your insurance company about all of the discounts that you may be eligible for.
Raise your deductible
Your deductible is the amount of money that you have to pay out of pocket before your insurance company starts paying for damages. Raising your deductible can lower your monthly premium. However, it is important to make sure that you can afford to pay your deductible if you have an accident.
Bundle your insurance
If you have homeowners or renters insurance, you may be able to save money by bundling it with your car insurance. Many insurance companies offer discounts for customers who bundle their policies.
Choose the right coverage
It is important to choose the right car insurance coverage for your needs. Don’t overpay for coverage that you don’t need. For example, if you have an older car, you may not need comprehensive and collision coverage.
Review your policy regularly
Review your car insurance policy on a regular basis to make sure that you are still getting the best possible rate. If you have made any changes to your driving situation, such as getting a new car or moving to a new area, be sure to contact your insurance company to see if you are eligible for any new discounts.
Use a telematics device
Telematics devices are devices that track your driving habits. Many insurance companies offer discounts to customers who use telematics devices. This is because telematics devices can help insurance companies to identify safe drivers.
By following these tips, you can save money on car insurance without sacrificing coverage.
