Every state requires some form of auto insurance. Because most of us don’t actually get to reap the benefits of car insurance regularly, we don’t know exactly where to spend, and where to save, when shopping for a policy. For some ways to save on car insurance, we caught up with Andrew Schrage, co-owner of Money Crashers Personal Finance.
Here are Schrage’s recommendations on six ways to save on car insurance:
1) Shop your policy.
Different companies do provide differing rates, so it’s important to get quotes from at least three in order to make the best choice.
2) Improve your credit score.
Some auto-insurance providers do look at this, and a higher score can get you a lower rate.
3) Keep Your Insurance Agent Informed.
Make sure you keep your insurance agent updated on any life events, such as getting married or buying a home, which can your lower premium.
4) Older Car? Drop Some Coverage.
Those with older, used cars might want to drop comprehensive and collision coverage to save cash as well.
5) Safe Driver? Raise Your Deductible.
If you’re a safe driver, raising your deductible can get you a lower premium also. Just make sure you have enough tucked away in your emergency fund to cover the added expense should an incident occur.
6) Ask for Discounts.
Be sure to ask your agent of all available discounts (there are some you may not be aware of) to see if you qualify.
Huge thanks to Andrew Schrage, co-owner of Money Crashers, for the tips.
Some more tips from Openbay:
- Always drive safely, and not just in order to keep your insurance rates down.
- Quickly compare your insurance options the modern way by using a site like Answer Financial Insurance.
- If you have any points on your driving license, look into taking a defensive-driving course, which may lower your premium.
- Consider signing up for a usage-based insurance program, which may lower your rate, based on how many miles you drive, or how safely you’re operating your vehicle. Note: if you’re an aggressive driver, this is not for you, as some companies may use the information to raise your rate.
Drive safely, everyone!
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