How to Save Big on Auto Insurance Costs

Auto Car insurance

While drivers enjoy the freedom of driving, the costs associated can make it feel much more stressful. With auto insurance costs on the rise, it is a great time to learn how to save tons of money over your lifespan.

This is why so many people nowadays compare auto insurance quotes, instead of just renewing their current policy.

Having these tips will greatly benefit you to help keep your rate as low as possible. Here are a few points that can affect your rate:

  • Make and model of vehicle – Sports cars will have higher premiums than minivans.
  • Credit score – The higher your credit score, the lower the rate.
  • Age and gender of the insured – The older you are, the lower your rate could be.
  • Driver record – The more accidents you’ve had, the higher the rate.
  • Location of your home – Moving just a city away into a new state will affect your rate.

It doesn’t make sense to spend your hard-earned money on a high auto insurance bill. With these simple tips, you can lower this cost, and save for the things that you really want.

After knowing these key points, you can know what ballpark your premium and rate will be at. This will help you go into negotiations knowing what your price range is.

Companies will often try to get you at higher rates, so comparing multiple insurance companies will help show you the true cost. Just by comparing quotes, I’ve lowered my monthly rate from $150 at Nationwide to now $65 at Geico! 

Imagine the weight lifted off your shoulders as you save almost $100 to use for other things without sacrificing automotive coverage.

Compare Companies

It’s not smart to let your insurance policy just renew each period. It is easier to do this, but you are probably paying more than you need to! Taking the time to get a few quotes from competing companies will really help you out financially.

Every insurance rate varies, so make sure you compare at least 3 companies. Also, when comparing companies, make sure to know what coverage you require. 

Review Rates

Before you purchase vehicle insurance, you will want to compare the insurance rates you’ve collected. When you are collecting quotes, make sure to look at the coverage benefits, and the total amount owed during the policy.

The policies can vary from 6 months to 1 year, so before getting locked in make sure it’s a smart decision. You can also create a budget to plan your auto expenses like monthly gas costs, upgrades you want, buying a new car, and, of course, insurance.

Maintain a Good Driving Record & Credit

When getting insurance, you can’t expect a low rate if you have a bad driving record, especially within the past few years. Avoid speeding or driving dangerously to lower your risk with the provider. A high-risk driver will always need more insurance like from SR-22 insurance policy quotes, versus a low-risk driver getting basic coverage.

The SR-22 helps drivers who have high-risk driving records to get insurance without being overcharged. Usually, a higher deductible means a lower monthly rate since they’re covering you less. If you go this route, make sure to save money in case an accident occurs, and your policy doesn’t cover it because you wanted to save more.

Insurance companies always review your credit when calculating the rate you will pay. If you’ve maintained a good credit score, then you will, fortunately, pay less. Raising your credit score to Very Good is somewhat difficult, but just takes a few wise financial steps.

Some methods are keeping your credit card usage less than 30% of your credit line available or paying it off completely each month. Once your credit spent exceeds your credit available, then your credit score will plummet possibly 100 points.

To fix bad credit, get another credit card to disperse the credit and avoid going over. Another method is to request a higher credit line, and if an incident does, occur, you may be able to request goodwill from your bank.

Even More Savings

Some final saving tips are to pay your policy balance in full instead of monthly. Also, get a discount for bundling your home and auto policies at the same company. Lastly, you can do a few small things like getting good grades if a student, taking safe driving courses, or insuring more than 1 vehicle.

Either way, make sure to compare rates and not just renew your policy until you’re happy with the rate!

Image source: Freepik Premium

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top