It seems like insurance premiums are constantly on the rise – whether it be home, auto, health, or even life insurance.
With any luck, your parents taught you about money, and that finding ways to save money were always a good thing!
So, with these constant price increases and some good financial ‘sense’ instilled through childhood, you’re probably looking at ways in which you can save a few dollars. Unfortunately, it can be hard to cut back on our insurance policies, especially the critical ones, such as health or home.
Luckily for you, there is one type of insurance where you can make a few cutbacks without putting yourself too much at risk – auto insurance.
There are actually a number of ways in which you can lower your auto insurance premium – and we have them outlined below, just for you!
The Best Ways to Lower Your Premium
For those of you looking to save a few dollars each month on your car insurance, take a look at some of these tips:
Bundle Your Insurance Policies
One of the best ways to save money, and not only on your auto insurance but on your other policies as well, is to bundle.
By bundling various policies – such as auto, home, and life insurance – with the same provider, you will typically receive discounted rates.
To find the best rates, shop around at various providers to see who offers the right policies for you and at the best bundle deal.
Increase Your Deductible
One of the first things you should consider if you want to lower your premium is to opt for a higher deductible.
The deductible is the amount of money you have to pay before your insurance provider covers the remaining cost. For example, if you have a $500 deductible, and your car has $1000 worth of damage, you will pay $500 and the insurance company will pay $500. If, however, you had a $1000 deductible, you would front the entire $1000 and your insurance wouldn’t cover any of the repairs.
Of course, this method will save you money month by month but may end up costing you a few hundred dollars extra if you were to get into an accident and require repairs.
Remove Unnecessary Coverage
You may be paying for coverage you don’t need – and what is more of a waste than that?
Perhaps you are paying to have additional drivers covered even though there are no longer any other drivers using the vehicle. Maybe you are paying a premium collision coverage fee for a vehicle that isn’t even worth enough to repair or replace in the event of an accident.
Take a good look at your policy and ensure that everything included is something you need – otherwise eliminate it! The less coverage you have, the less you will spend – and less coverage isn’t always a bad thing.
Start Saving Now
Everyone can benefit from saving a few dollars – so if you can make a few small changes in order to pay a lower auto insurance premium then why wouldn’t you?
It’s as easy as speaking to your insurance agent and finding a solution that works best for you!