No matter how you were impacted by the economic downturn we’re continuing to slog through, it’s making finances hard for a lot of folks right now. Mortgages not paid, rent payments missed, and car notes paid late.
One of the things most of us have to have is insurance – whether life, health, or for your automobile, so let’s talk about how you can potentially save some money (especially if it’s tight right now) on car insurance.
- First of all, shop around. We’ve discussed this before, especially with homeowners insurance and assessed values, but car insurance magically “bumps” every year or so, too. While it’s likely you could simply call your insurance company and get a policy requoted, it’s never a bad idea to check out your options online to have a number and a “real’ quote to reference. In our experience, it really is about a fifteen minute process. The other side of this coin is to simply call your provider and ask for them to lower your rates. Surprisingly, this works in a lot of cases, so it’s worth a shot, especially if you are happy with the coverage they are giving you but would like to lower your costs.
- Another easy way to save is paying in full. Most companies will offer some type of discount if the policy is paid in full every year of six months. This could add up to several hundred dollars over a year’s time, so if you can swing it, definitely ask about it with your current provider.
- Increasing your deductible. Simply doubling your deductible from $250 to $500 is usually good for about a 20% decrease in your policy costs, but understand, though, that you’ll likely have to come out of pocket for that much more – a cracked windshield, for example, is likely going to be all on you.
- Ask about multiple policy bundles. This is always a hot item in insurance advertising, but surprisingly, a lot of folks don’t look into it. Bundling, on average, can save you up to 20% as well, so it can be well worth the time and effort to do it.
- Good grades count. If you’re insuring teenage drivers, good grades often result in lower rates, so be sure to look into how that can help your insurance costs. (This works both ways, too – bad grades and higher premiums can be a powerful motivator for teenagers trying to enjoy freedom for the first time…)
- Ask about data tracking. More and more companies are using real time data to determine the insurability of drivers. With a simple plug in device, GPS provides real-time feedback on how a driver actually drives their vehicles and where. This allows companies – in many cases – to tailor a policy for the individual instead of the population. The results could mean substantial savings (or, on the other hand, substantial increases!)
There are lots of challenging things going on in our economy right now and for many folks, their income has been impacted by inflation and rising interest rates. If you’re trying to keep it all together, watching where your money is going is an important piece of the puzzle. Keeping your insurance rates as low as possible might give you and your finances the edge you need.
All the best-