Car insurance is a necessary evil that can wreak havoc on your bank account every month. Simply being a safe driver isn’t enough, as most insurers need proof in order to lower your monthly costs. Even if you don’t get into any accidents, your car insurance payments can still be very costly.
If you want to save money and be thrifty, it is important to learn how to lower the car insurance payments. Here are eight tips and techniques you can use to learn how to lower car insurance payments:
1. Increase your insurance deductibles
If you have the extra funds, increasing your deductible is an excellent way to lower your car insurance payments. Your deductible is the amount you’ll have to pay out of your own money if something were to happen to your car. Increasing your deductible from $250 to $1000 can save you a significant amount on your monthly insurance costs.
However, for this strategy to work, you’ll need to ensure you have your deductible amount saved and ready to go in case of an accident. The penalties for not meeting your deductible may be severe and vary across different insurers.
2. Develop safe car driving habits
Finding ways to sustain a safe driving record is one of the best ways to lower car insurance payments. Even a minor accident can affect your driving record for many years. Your behavior behind the wheel and commitment to practicing safe habits, such as wearing a seatbelt, will keep your insurance costs low.
Insurers also notice when you invest in the safety of your car. Regular inspections and maintenance is a factor that affects your status as a safe driver. Buying a car with safe driving features such as a backup camera, pedestrian detection, or forward collision warning will make it easy for you to prove to your insurer that you’re a safe driver.
3. Invest in a car monitoring device
Technology is making it easier to prove to your insurer that you are a safe driver, which will help to lower car insurance payments. You can use a car monitoring device to track your driving behavior and prove that you’ve earned lower insurance costs.
Car monitoring devices track everything from the speed you drive to whether you make complete stops or not. Tracking your driving behavior is a great way to build an argument for lower insurance rates.
4. Explore your car insurance options
Getting the traditional full package of car insurance isn’t the only way to go about protecting your car. There are many different types of car insurance available, and you can work with an insurance broker to choose a plan that best suits your lifestyle.
Comprehensive coverage plans include everything from theft, fire, hail, or vandalism, but they come at a high monthly cost. You have the choice to purchase components like collision coverage or personal injury protection on their own, which can be less expensive. Review your options before signing up for a static insurance package that may not suit your needs.
5. Invest in keeping your car safe
Investing in the security of your car is a great way to show your insurer you’re a responsible customer. Installing anti-theft devices is an easy and smart way to improve your car’s defenses.
You can install a tracking system or an alarm system that will help protect you from theft and vandalism. The more security devices you have in your car, the easier it will be to lower car insurance payments.
6. Buy different types of insurance from the same provider
When it comes to learning how to lower car insurance payments, bundling your insurance services with the same provider is an excellent technique. Many insurance companies will give you a deal if you buy 2 or more types of insurance with them.
You can bundle your homeowner’s insurance along with your car insurance to save some money on your monthly payments. It’s worth comparing services from different companies to see which insurance providers can give you the best deals for bundling.
7. Look for ways to get car insurance discounts
Depending on your insurance provider, you may be eligible for special types of discounts to lower the car insurance payments. Low mileage discounts, student driver discounts, or retiree discounts are examples of different ways insurance companies help customers save money.
Review your insurer’s policy and see what type of discounts you’re eligible for to help you save on your monthly costs. Certain insurance providers also give discounts for drivers who take safe driving or defensive driving courses. It’s also worth asking about discounts for having a good credit score, being a student, or going more than 3 years without an accident or traffic violation.
8. Inquire about group insurance discounts
Another way to save money on your monthly insurance costs is to take advantage of group plans. Some insurance companies offer discounts to drivers who are able to use a group plan through their employer.
You can also join professional, alumni, or business groups that may be eligible for group discounts with your insurance company. Ask both your insurer and your employer for more details on group insurance and how you can take advantage.