How to Lower Your Car Insurance

auto-insurance-policyInsurance is probably where a lot of your budget goes every single month. It’s one of those painstaking bills you get in your mailbox every month and you absolutely have to have it. It’s simply not an option to live without insurance. When you get car insurance for the first time it can be really hard to find the best prices, but once people go with their provider they typically just pay for insurance every single month and don’t even think about how much money they’re spending anymore. They give up on trying to save money on their insurance, because they’ve already looked for the best deal and they’ve got it, so what else can you do? The price you pay for insurance is not set in stone. Below, I’m going to give you some tips that will help you lower your insurance bill.

#1. Raise Your Deductible

When someone gets insurance they typically settle on a deductible amount and they never even think about adjusting their deductible. However, if you do adjust your deductible, you’ll be able to save a good bit of money. Now, if you’re in an accident, you’ll end up paying more, so this is a bit of a gamble. Therefore, it’s important that you take a look at everyone on your insurance policy and determine whether or not they and yourself are safe drivers. If everyone has a history of safe driving, you should raise your deductible and save some money.

#2. Consider Carpooling

I know that some people aren’t too keen on this idea, but it’s an option that will save you money. Carpooling means that you will be driving less. Typically, the less you drive; the more money you will be able to save on your insurance. This depends on your insurance company, so talk with them to make sure, but most companies do track mileage and offer discounts for people that drive less.

#3. Consider Lowering Your Coverage

When you first buy a vehicle, you have to pay for top-of-the-line insurance until you own the vehicle. However, a lot of people forget to drop the coverage once the vehicle has been paid off. It’s extremely smart to check out your vehicle’s value on Kelley Blue Book and then look over your insurance papers. Chances are you may have more collision insurance that you need, because your vehicle has dropped in value over the years.

#4. Combine Insurance to Save Money

A lot of insurance companies don’t only offer one type of insurance. Most companies will offer vehicle insurance, life insurance, homeowners insurance, renter’s insurance, etc… Consider combining all of your insurance policies with one provider and you will likely save money. This is called stacking and you will be eligible for more discounts and savings.

#5. Monitor Your Credit Score

Always make sure you pay your bill on time, because your credit score can actually have an impact on the price you’re paying for car insurance. If you’ve noticed your score has increased, you should call your insurance agent, notify them of your increased score and see if they can offer you a better rate on your insurance.