Car insurance can be expensive. However, it’s also necessary. Not only is it required in California, you will be glad you have it if you get into an accident. While having the right amount of insurance is important, if you can get it for less, that would be the best-case scenario. Here are a few ways that might save you money on car insurance.
Bundle your Insurance Policies
Most insurance companies will give you a discount for having multiple lines of insurance with them. For example, if you have your homeowners or renters insurance and car insurance with a single company, they will often give you a discount for that.
Drive Fewer Miles
The more you are on the road, the more likely you are to be in a car accident. Insurance companies know this and they charge higher rates for people who drive more frequently. However, if you can prove to your insurance company that you don’t drive very many miles in a year, they might give you a discount.
Drive Safely
The best way to keep your car insurance down is to be a good driver. If you get a speeding ticket or are in an accident that is your fault, it is likely that your rates will go up. Many companies offer ‘good driver discounts’ that give you additional discounts if you don’t have a traffic incident for a certain number of years.
Raise Your Deductible
Raising your deductible can lower your insurance premium. For example, if you have a deductible of $500 and raise it to $1000, may not have to pay as much for your insurance policy. In many cases, doing something like this can pay off in the long run.
For example, lets say you are paying $100/month for car insurance with a $500 deductible. If you raise your deductible to $1000 and your premium gets lowered to $80/month, you are now saving $20/month, which equals $240/year.
Obviously every scenario is different, but if you ask your insurance company how much it would save you to raise your deductible, you can do the math yourself to figure it out.
Ask Your Insurance Company for a Discount
This might seem too obvious, but consider calling your insurance company and asking them if there are any discounts available that you aren’t taking advantage of. You never know what they might be willing to offer you.
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