Owning a car costs money, plain and simple. Car insurance is one of the biggest expenses associated with owning a car. After a monthly loan payment and fuel, car insurance is the third most costly expense for many car owners. Learning how to save money on car insurance is vital to make owning a car as affordable as possible. Surprisingly, most car owners are paying too much for their auto insurance. You can avoid being in that category by shopping around, considering coverage options and checking for discounts.
Shop Around and Compare Coverage
Each company has unique policies for evaluating and establishing insurance rates. Is your current company using the best policies for you? Is there any harm in receiving car insurance quotes from other companies to be sure? By simply requesting quotes from three or four other companies, you can see how your current rate stacks up. You may be surprised by which companies offer cheap car insurance. The best source for receiving automobile quotes is AutoInsuranceTips.com.
Receiving a cheap auto insurance rate is not solely dependent on the insurance company, but also on the level of coverage. Evaluate your current plan and determine if you truly need everything that is being covered. If you are setting up a new insurance plan, be sure that you understand each option and have a clear need for it. Remove any unnecessary coverage and watch your rate drop even lower.
Do You Qualify for Any Discounts?
According to Edmunds, a publication devoted to all things automotive, one of the biggest opportunities for saving on car insurance is hidden within discounts. Below are five common types of discounts that you may qualify for:
- Low Risk Occupations – Insurance adjustors compile all sorts of information to arrive at insurance rates. Over time, trends begin to emerge. People with certain occupations have shown to be in fewer accidents. Therefore, some insurance companies offer discounts for low risk occupations.
- Professional Organizations and Auto Clubs – Being affiliated with many organizations and auto clubs, such as AAA, can provide lower insurance rates. Check with your employer to see if there are any group discounts available.
- Combined Discounts – Most insurance companies offer home and auto insurance policies. If you purchase both through the same company, you will likely receive a discount. Mention this to your insurance agent and see if you qualify.
- Discounts for Auto Safety Features – Is your car equipped with antilock breaks or other enhanced safety features? Review your car’s specifications with your insurance agent, be sure to bring your owners manual!
- Senior Citizen Discounts – If you meet the age requirements, you may qualify for a senior discount. While most companies will offer this discount automatically, ensure that you are not overlooked.
Saving Money on Car Insurance Is Easy
Having cheap car insurance isn’t reserved for a select few. Anyone can have an affordable insurance rate. You can save money on car insurance by regularly shopping around and comparing quotes. Make sure that you are not overpaying for coverage that you won’t be using, and check for any possible discounts.