By Madeline Klein on May 17, 2019.
Let me guess. You want to spend more money on fun things, and less money on bills, right? We feel the same. While we have to pay a fixed amount on some things (looking at you, Netflix, and that 8.99 we spend every month), there are some bills in life you may be able to impact. And it just so happens that car insurance is one of those things.
Sure, you can shop around for new car insurance, and we think you absolutely should do that every once in a while, to make sure you’re still happy with your provider. But, there are ways to lower car insurance, no matter who your provider is.
1. Consider your deductible
Your car insurance deductible is the amount you’d pay out-of-pocket for a covered car accident before your auto insurance kicks in to help. You’ll want to choose your deductible based on how much you could pay out after an accident.
Increasing your deductible will typically lower your car insurance rate. Keep in mind though, if you do get into an accident, you don’t want to have your deductible too high and not be able to afford to fix your ride.
2. Look at coverage limits
Coverage limits are on the same wavelength as deductibles. A coverage limit is the max amount your insurance provider would pay after a covered accident. Any other expenses that exceed the limit are your responsibility. Lowering your limits will lower your car insurance rate a bit because you’re now on the hook for more money in the event of an accident. A good rule of thumb is to check out the total value of your assets when looking into limits and what your limits should be.
3. Improve your insurance score
An insurance score is a number providers use to help predict how likely it is you’ll have a claim. It looks at your financial history and how responsible you are with your money, like if you pay your bills on time. They are similar to credit scores and can be improved, but it’ll take some good-old hard work. But because many providers use it as a factor in your rate, improving your insurance score is a way to lower your car insurance.
4. Shop around
If you don’t already, you should shop around for auto insurance every once in a while. It’s easy to get insurance and forget about it, but a regular review of your coverage and rate will ensure you’re not letting a better deal pass you by.
This can be especially true with bundled insurance. Make sure you’re looking at each policy’s individual cost within a bundle to know if you’re paying the price you really want for each policy.
5. Review potential discounts
One simple way to see if you can be saving more money is to check on the discounts your provider offers. It’s an easy thing to review and could save you some major cash if you find discounts you either didn’t know about or didn’t qualify for before. Things like paying-in-full and going paperless may lower your car insurance rate and are not much effort on your part.
How to lower your car insurance rate? Do your research.
Sometimes it seems like insurance is a set number and there’s no getting around it. But there are usually some small changes you can make to lower your car insurance rate. A little bit of time spent researching can make a big difference in uncovering savings.