If you’re looking for ways to cut money from your monthly bills, look no further than your car insurance.
Although some of the factors that influence your insurance rates are outside of your control, there’s a lot you can do to secure lower rates if you know where to look. Here are some tips and tricks to get you the best rates on car insurance.
Model behavior to get better car insurance rates
In the market for a new ride? Keep in mind that some cars cost more to insure than others. That Benz may make for a sweet drive, but more expensive cars can be pricier to repair or more tempting for thieves—and more risks for the insurer mean higher costs for you.
In general, luxury and sports cars are more expensive to insure than older, family cars. Auto industry expert Edmunds.com recommends checking for rates with your insurance carrier when shopping for a car so that you know what you’ll be paying before making a commitment.
Speak up or pay up!
No surprise here—not all insurance rates are created equal. Unfortunately, many drivers don’t take the time to comparison shop. And even when they do, they don’t always push to get the best rates. Many carriers offer discounts for drivers with excellent records, short commutes, or even good grades (for students, of course). The key is to ask! It can’t hurt, and you might be surprised at the discounts you can get.
Double down on your deductible
Your deductible is the amount you pay before the insurance kicks in. If you select an insurance plan with a larger deductible, you’ll see a lot of savings on your monthly premium—sometimes as much as 30%. But be warned: you may keep more cash in your pocket at first, but if you’re in an accident, you’ll need to pony up that cash up front. For example, if you raise the deductible from $500 to $1,000, you’ll see a decent monthly rate savings and will still have coverage, but if you need to use that insurance, you’ll have to pay out a grand before it kicks in.
Cut collision coverage on your car
Most states require you to carry collision coverage for other cars, but you can decide whether or not you want collision coverage on your own vehicle. If you own an older car and don’t mind the occasional dent, you can save money on car insurance by dropping collision coverage on it.
According to an IHS Markit study, the average age of a car on U.S. roads is 11.6 years. In unsteady economic waters, people hang on to their vehicles for longer, says car industry market researchers R.L. Polk & Co. If your car is on the older end, you may want to consider foregoing collision coverage. Older cars can often cost more to repair than they are worth.
Play it safe
Saving some cash on your car insurance may not be worth a major life change, but if you’re already looking for work, you might want to consider how your job can affect your insurance rates. Many insurance carriers give lower rates to people with safer professions, like librarians and accountants. Check out this DMV breakdown to see which careers will help and hurt your insurance rates.
Optimize your credit
More and more, states are allowing auto insurance companies to consider your credit score when determining your rates. If you’re suffering from poor credit, it’s time to buckle down and button up your personal finances. Check out some of Credit Sesame’s quick tips and tricks for raising your credit score.
Not sure which car insurance plan is right for you? SuperMoney can help you find the perfect plan.