The best ways to save on car insurance

When you get a car, you need to have car insurance. It is important to get comprehensive coverage, but also cheap. While most people are very concerned about getting a good price when they first set out to get auto insurance, they often don’t keep looking thereafter. Not continually searching for great deals can cost you hundreds each year.

Many people don’t realize that the cost of your auto insurance can be lowered to help you save, based on your driving record, your car, and where you are.

Increase your deductible

If you insure the amount you pay toward a deductible, you will reduce the cost of insurance rates. Now understand that this move is certainly a way to save on month-to-month costs, but if you end up in a car accident, then yes, it may end up costing you more to repair the damage.

However, if you have a track record of being a safe driver, give it a try and set aside some money for an emergency fund to cover unexpected car costs.

Try car sharing

There are some insurance companies that actually track mileage, so the less you drive, the cheaper your coverage will be. With these types of policies, if you drive less than 7,500 miles, you get the lowest rate, and up to 13,000 miles is the middle rate.

Change plans to what you need

It’s better for you to change plans to what you need, when you need them. Buying a new car will require different insurance compared to an older car. When you’re paying off your car loan, you’ll need collision and comprehensive coverage, but once you’ve paid it off, you’ll have many more insurance options available to you.

You could end up with more collision insurance than you need. In fact, on older cars, it’s recommended that you drop collision insurance anyway because comprehensive coverage is comparable inexpensive and will give you all the coverage you need.

Combine policies

If you have auto insurance and renters/homeowners insurance through different companies, you may be able to combine your policy with one company and earn discounts.

Consult for discounts

Whether you’ve changed jobs, moved to a new place, or anything in between, keep track of your policy options. You may be able to get a cheaper policy in a new city or with a new job.

check your credit

Your credit score has a small role to play in your insurance costs. So pay your bills on time and be sure to work hard to improve your credit score. While you’re at it, continually check to see if you now qualify for lower rates.

Other discounts

As a student, good grades can earn you discounts. As an adult, see if you can take an adult driver safety program with better discounts. Consider avoiding a red-colored car, as these come with higher insurance rates for users compared to other colors.