Skip to main content

Top 7 Ways to Save on Car Insurance

We all have to pay for car insurance, but that doesn't necessarily mean that we all have to pay the same price. You may already be paying too much for auto insurance when you actually qualify for discounts and benefits that can keep your rates low. If you're looking for ways to save a little extra money each month on car insurance, consider the following top seven most effective ways to save money without sacrificing protection.

1. Compare and contrast

When you want to find the best price on anything, the most effective way to do this is to shop around at multiple carriers to determine the best price. There are plenty of popular insurance companies and local companies in your area that all have different packages and different prices. Find out which company is the most lenient on your unique situation. For example, if you have a less than perfect driving record, you'll want to see which company penalizes driving records the least to get the best price.

2. Avoid insurance lapses

When you let your auto insurance expire without renewing it for an extended period of time, you will find that obtaining new insurance is even more difficult than just renewing it right away. This is because drivers who let their policies expire are statistically proven to be higher risks to the insurance company, which may result in increased coverage rates.

3. Raise your deductible

Your deductible is the amount of money you are required to pay to contribute to repairs after an accident occurs. Naturally, raising your deductible can lower your insurance rates, but you will want to make sure you don't raise it beyond what you can afford. Determine how much money you have in the bank along with what you could potentially dish out in the event of an accident to calculate an appropriate figure.

4. Only buy what you need

You may be persuaded into acquiring huge coverage plans that you don't realistically need, especially if your vehicle is old and of low value. If the cost of repairing your vehicle in a car accident would cost more than replacing the vehicle, you might want to consider investing just in liability coverage to avoid putting too much coverage on your clinker.

5. Take an educational course on safe driving

Insurance companies tend to reward safe drivers for keeping a clean record and going the extra mile to promote safety on the road. Taking a defensive driving course is a good way to prove that you have been properly educated and evaluated as a safe driver. When you show your insurance company that you have taken these extra measures, they will likely lower your insurance rates since you are at a lower risk of getting into an accident.

6. Build up your credit

Statistically, people with high credit ratings are less likely to file insurance claims. Based on this information, your insurance company will be a lot more lenient on you if you have good credit. To keep your credit in good standing, pay off your debts as quickly as possible and try to avoid getting in to debt for things that aren't essential.

7. Install an anti-theft device in your vehicle

Insurance companies are known to offer discounts up to 36% for anti-theft devices, since these have proven to dramatically reduce the risk of theft. This would not only benefit you by keeping your belongings safer, but will also help you save money on car insurance every month.

About our guest author:
Diane Johnson writes on different topics, from finance to Rasmussen College. In her free time, she loves traveling and enjoying the outdoors.


Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Basics of Stock Markets: The A-Z Quick Sheet for a Beginner-Level Investor

Several individuals wish to engage themselves in stock market and invest their money in stocks, but they don’t have an idea about Stock markets and how they work . In fact, there may be lot of info available to you, but they may all seem confusing without actually knowing the basics. This post aims at educating the beginners about the basics of stocks market. Read on to enlighten yourself about the A-Z of stock market. 

Looking For Ways To Finance Your Next Building Project? Look No Further

If you need money to start your next building project, you may be quite surprised by the number of different options you have. However, the options that will actually be available to you will depend on many different factors and these factors will decide how eligible for construction finance you are. In this short article, we will look at what you can borrow, how you can borrow, and what restrictions you might come across. Please note that while the information in this post is correct, your own personal situation will determine what the best course of action is for you. Speaking to an independent financial advisor will help you to see if you are eligible for construction finance and how to go about getting it. Different Types of Mortgages Let’s start with the different types of mortgages that may be available to you. Remember, whether one is better for your needs than another depends on many factors. Commercial Mortgages Let’s start with commercial mortgages because they a

Four factors that have fuelled city-centre living

Urban centres have become increasingly popular in recent years as both residential locations and as commercial space. This social change has been driven by a number of factors and has been reflected in the number of new property developments springing up in major cities around the UK. As space tends to be at a premium in urban areas, it has led to the construction of a greater number of apartments; potentially fuelling interest in block of flats insurance . So why have so many people decided that an apartment in a town is a better place to live than a larger house in the country? Here are four factors that are likely to have spurred on the rush for the city...

Manage Your Student Loan Debt Better in 2015

Image via gettyimages It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strateg y when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

Learn how real estate agents value properties for sale

How do you get into real estate sales? Every owner wants to sell his property for its maximum value. And all too often they end up choosing a real estate agent simply based on who gives them the highest initial valuation. However, this will be a costly mistake. How your home is valued. If you make a mistake in the estimate, it is possible that it will be sold for a price that is less than the real value of the property. On the other hand, even overpriced homes will discourage potential buyers from viewing your home. Also, high selling prices can even result in a long wait before a good deal comes in or does not sell at all. Therefore, titration is recommended as a suitable agent. Here are some things that real estate agents consider during property valuation . But, few factors real estate agents consider when valuing a property. 1. Local services:   During property valuation, one of the main factors that can drive the sale price up is the actual area where the home is located. Aspects