Saving money is a constant topic of discussion for many people, but it can be especially hard to cut back when your bills are too high. Fortunately, there are steps you can take to lower many of your bills if you’re willing to put a little bit of effort in.
Your car insurance is one area where you can save a good amount of money. Simply shopping around and making some adjustments to your policy is a great way to give yourself some breathing room on your monthly bills.
Do Your Due Diligence
The first and easiest step in saving money on your car insurance is to shop around. A lot of people feel trapped with the insurance provider or policy they have and don’t think to change it. In fact, simply getting quotes from a few different providers can save you a nice chunk of change. Make sure you call around to different providers to check if their plans can save you money.
Another great way to save money on your auto insurance is to look for discounts that may apply to you. Car insurance companies will often offer discounts for students, people who have a good driving record, people who drive environmentally friendly cars, military members, and more. Make sure you describe your situation to the insurance agent you speak with to see if you’re eligible for any discounts. Some of these discounts can save you as much as 20%.
Bundling your insurance policies also saves you money. If you have a few different insurance policies spread across various providers, consider bundling them all together using one insurance company to save money.
Change Your Policy
If you’re not seeing enough savings from simply shopping around and looking for small discounts, it may be time to make a change to your policy. The biggest thing you can do to lower your insurance bill is to raise your deductible.
A deductible is the dollar amount in damages where the insurance policy begins to pay out. If you have a $500 deductible and it costs you $250 to get your windshield replaced, you’ll have to pay for the repair on your own.
The thing is, there aren’t a ton of repairs that cost such a small amount. Many people carry a deductible as small as $250 or $500, but the damaged caused by almost any accident is going to cost more than that. If the damage is $1,200, for example, you could have gotten away with a $1,000 deductible which would have saved you a considerable amount on your monthly premium.
There are drawbacks to this, as you could lower your deductible just before an accident and end up having to pay out of pocket for repairs. If you have a relatively expensive vehicle where you can expect repairs to cost more, you’re probably safe to raise your deductible.
You can also save money by switching from full coverage to liability coverage, which is when your insurance only pays for damages to the other vehicle. This works for some drivers, but you won’t receive compensation for damages to your vehicle in the event of an accident.
Ultimately, any decision you make about your car insurance policy should start with plenty of research and careful decision-making. Saving money is important, but you don’t want to leave yourself stranded in an emergency, especially if it only means saving a small amount of money each month.
Saving money may seem like a distant goal, but you can quickly cut back many of your bills if you simply shop around with competitors and make sure you’re not paying for anything you don’t need.