4 Tips for Saving Big on Car Insurance
As American’s continue to tighten their belts and budgets, many have looked at their car insurance rates and begun looking for cheaper alternatives. Most people simply assume that the rates are high and that their is nothing they can do about it. This kind of thinking will not help you save money on car insurance. Their is significant savings in terms of car insurance if you are willing to do a little bit of leg work.
The first and most important step to take when purchasing car insurance is to comparison shop. Their are dozens of car insurance providers and every single one of them will have a different rate for you and your family. The premium can vary wildly from company to company, with some quoting even hundreds different than one of their biggest competitors. Most providers now have easy online calculators that will allow you to plug in all your information and get a quote online. You could literally spend one hour researching the top ten companies and come out saving $100 dollars every six months. That savings will add up quickly.
Raising Your Deductible
If you are a good driver, and haven’t been involved in a wreck, why do you have your deductible so low? The deductible is the amount you pay in case of a wreck. That can be anywhere from $100 to $500 dollars. If you have never crashed your car and aren’t likely to do so in the future, it’s a very smart decision to raise that deductible as high as the company allows you to. This will save you even more money.
Low Mileage Discounts
If you don’t inform your insurance companies how many miles you drive each year, they will more than likely overestimate how often you are on the road. Let them now how many miles you drive and stay within the limits. The less miles you drive, the less you will have to spend on insurance.
Picking the Right Car
Different cars have very different insurance rates. Companies charge you based on how likely your car is to get in a wreck. If you purchase a car that many younger drivers are buying, your rate will be more expensive. You may think you are saving in gas money by buying the little car that everyone is driving, but the car insurance premium could more than make up for it on the other end!
These tips can save you hundreds of dollars without too much effort on your part. It’s a great and smart way to save money.