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Tips for Saving Money on Car Insurance
If you’re re-evaluating your expenses, your car insurance policy is probably a good place to start! You might be paying the same rate you were paying ten years ago because you haven’t explored your options for changing policies. Intentionally exploring how you can save money on your car insurance could end up in your favor. Here are some tips you should follow in order to save money:
Ask about discounts: Insurance companies usually offer a discount to drivers who have taken a defensive driver course or, for older drivers, a refresher course. Another way to receive a discount is to turn in your child’s grades or have them take a safety driving course as well.
Go high on deductibles: If you’re willing to give a little with your deductible, you can wind up saving big on your auto insurance rates. If you go from a $250 to a $1,000 deductible, you may be able to save between 25 and 40 percent on your policy. You can then set aside a portion of these funds to cover your costs in the event of a claim.
Explore other options: Websites like ConsumerReports.org suggest building a relationship with a private insurance agent. Private agents are more likely to be willing to “shop around” with your best interests in mind.
Maintain good credit. While great driving habits are the best way to keep car insurance costs low, in many states, your credit score could also be a factor. Repair a damaged credit rating by consistently paying bills and using credit responsibly. Examine your credit report for any mistakes and fight to fix them. This may help you keep your car insurance cost low.
Check into bundling: Most of the time, bundling your home and auto insurance will save you money in the end. If you aren’t currently bundling your insurance, this might be an option for you.
Schedule an annual check: If you check on your car insurance options every year, it’s more likely that you’ll come across a better rate! Don’t feel locked into a policy simply because you haven’t explored the other options that are available.
When it comes to saving money, you have many options. Your car insurance policy isn’t usually the first place you would re-evaluate. But with a little bit of effort, you might end up saving yourself quite a bit of money in the end.