Car insurance is usually required by law. Most people choose an insurance company that’s either well-known or recommended by someone they know, and they continue paying their premium every six months. Many stay with the same provider for years without realizing they might be overpaying. However, you can save a lot on car insurance through several methods:
– Combine your insurance policies: You can get substantial discounts by bundling different types of insurance with one company. For example, by merging my home and car insurance with the same provider, I save $16 a year on home insurance and $74 on car insurance.
– Take advantage of low mileage discounts: If you don’t drive much or use public transport often, this might benefit you. Many insurance companies offer discounts if you drive fewer miles than a set limit each year. For me, keeping my yearly mileage below 7,500 miles reduces my already low premium by $106.
– Enroll in a defensive driving course: Ask your insurer about approved defensive driving courses that could lower your premium. My insurer told me that completing such a course would give me a 5% annual discount.
– Keep a clean driving record: Avoiding accidents and tickets as much as possible will lower your insurance rates. For instance, having a spotless record for ten years earned us a $100 discount.
– Choose bi-annual or annual payments: Insurers usually offer various payment schedules for convenience, but often add a convenience fee. Paying every six months or annually can help you avoid these extra fees. To manage this, divide your total yearly premium by 12 and save that amount each month.
– Compare rates regularly: It’s a good idea to periodically check rates from different insurers. You might find a better deal. Just make sure to check the new insurer’s customer satisfaction ratings before switching, since poor service might not be worth the savings.
While saving on insurance might not always be at the top of your mind, it’s worth looking into because there are numerous ways to lower your premium. By exploring these strategies, you might see a noticeable reduction in your annual insurance costs. Investing some time in making a few phone calls and possibly taking a defensive driving course could lead to significant savings.