11 Ways To Save Money On An Investment Of Car Insurance

Car Insurance

Wanting to buy car insurance but have a tight budget? You need to know how to save money on car insurance. Discover the solution in this post. Click to read.

Is car insurance an expensive nuisance?


Is car insurance a worthy investment?

This depends on whether or not you need it.

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You should do something before an accident occurs out of the blue.

I strongly recommend you save money to invest in car insurance. In this post, I will provide you with 11 quick and effective ways:

Get multiple quotes

Get multiple quotes

You should have a starting point by getting quotes from various insurance companies. I had a mistake in the past regarding this thing. I buy car insurance through my inertia without having a comparison. Thus, don’t be lazy.

Many of you are surprised, but how much premiums you pay will vary from company to company. According to a car insurance study in California, the quotes for an identical policy can range from $504 – $1.488 every month.

On the Internet, there are some available tools which get quotes in minutes.

Consider your car

Consider your car

The vehicle has a significant effect on car insurance premiums.

To prove this, please take a look at a study on the most expensive and least cars. Their annual rates range from $1.112 (Honda Odyssey LX) to $3.835 (Mercedes 565 AMG Convertible).

Before purchasing, you can estimate the care insurance cost by using a tool from careinsurance.com. Or, it’s fine to ask for help from your existing insurance carrier or agent.

Adjust your deductible

Adjust your deductible

Perhaps most readers here know the necessity and importance of car insurance, no matter which their purpose is. If you have a tight budget, at least you should have an insurance which helps you handle unacceptable loses, but no more.

Many people said that a $100 deductible is too low.

To avoid buying unessential insurance, let’s answer this question:

Can you handle a $1000 loss?

If yes, why do you need to set a deductible at $100-$250?

How much can you save by increasing your deductible?

It varies, so I highly recommend you consult with your insurance carrier.

However, according to a study, you save 9% by increasing your deductible $500-$1.000.

Combine policies

Combine policies

In the case of multiple insurance policies, you should combine all of them with a carrier because this way can simplify your finances efficiently. And working with one carrier is always more accessible and more straightforward than working with too many carriers.

Here is another reason:

You may have a discount from working with one carrier since they combine their auto and insurance of homeowner with one company.

Guard your credit

Guard your credit

In many states, people use their credit to set the premiums. According to some studies, there is a correlation between how they handle their finances and claims history.

Thus, premiums are also significantly different.

Consumer Reports said that:

Their single drivers with good scores paid $68-$526, even more, every year. Meanwhile, the similar drivers with the best scores would pay the amount depending on their states.

Look at an example:

According to Consumer Reports, the drivers in Virginia who have a poor credit score must pay  $1,513, even more in annual premiums.

Claim the discounts

Claim the discounts

The majority of auto insurance companies provides their customers with a variety of discounts. So, before making a decision, you can ask your company for this expectation like a safe driving discount.

Below is a list of discounts you can refer to:

  • SmartRide (Nationwide uses to evaluate how safely you drive)
  • Paperless
  • New Vehicle (this discount is applied for under five years old cars)
  • Multi-Car
  • Combing Home/ Car
  • Good Student
  • The Affinity-United States Chess Federation member
  • Accident-Free

You should contact your insurance agent or carrier to learn more because there may be other extra discounts.

Pay By the Mile

By the Mile is a potential money-saver to pay for your insurance. It helps you decrease not only the miles you drive but also the premiums you pay. A quote from this carrier costs 3.2 cents every mile. But, it is not available in all states.

Decrease your coverage

Decrease your coverage

Like increasing your deductible, decreasing your coverage is also an excellent way to save money. Depending on the age of your car, the demand to fight against damage to your vehicle may diminish.

In some cases, you have to pay comprehensive, collision coverages, and deductible. And the overall cost of these things is higher than the value of your car. Thus, let you consider whether or not you need them to your policy.

Compare annual prices

Compare annual prices

It’s smarter to compare the current rate every year. You can perform this tip on the Internet in only a few minutes. Moreover, it won’t hurt your credit score.

Pay semi-annually

After every six months, your insurance bill will have two choices of payment: the six-month premium in full and the monthly installments. If you choose the former, you will save over 2% on your premiums.

Drive safely

Drive safely

This tip is too obvious, but you should keep in mind this thing.

Of course, avoiding traffic tickets and accidents is a good way to keep premiums low, but you can also allow your carriers to monitor your driving habits.

For example, Nationwide and snapshot provide SmartRide.

How does it work?

Simply, you plug this device into your vehicle for several months. It will monitor your certain driving habits such as daytime versus nighttime driving, idle time, hard stops.

Which tip is the best?

Car insurance plays a crucial role in protecting your vehicle. Thus, even you have a tight budget, you should spend a small amount of money to invest in insurance for your vehicle.

After reading my article, what do you think? Is saving money on car insurance simple? Please let me know by leaving your comment below.