Are you tired of paying through the nose for transportation? Not only is purchasing a new vehicle a pricy undertaking, but there are a lot of associated costs to consider as well. Obviously there is the cost of gas (you won’t go far without it). But you also have to shell out the dough for registration, maintenance, and of course, insurance. While there are ways to cut back in just about every area of car ownership, you may not be aware of the many ways that you can trim your insurance costs. Here are just a few that could really help you stick to your budget when it comes to owning a car.
- Consider your car. The first thing you need to think about is the type of car you own. If you’re driving a sporty, 2-door, midlife-crisis-mobile, then you’re probably paying way more than you need to for insurance. It doesn’t take a genius to figure out that an expensive (and high-risk) vehicle is going to come with a concurrent hike in your insurance coverage. So if you want to pay less right off the bat, consider purchasing a vehicle that is both sensible and affordable; your insurance will reflect your wise financial decision.
- Check your credit. Did you know that drivers with poor credit can end up paying a lot more for insurance? And these day, with so many people suffering from layoffs and credit debt (often through no real fault of their own), your once spotless credit may seem hopelessly marred. However, you can’t do anything to fix the problem if you don’t know there is one. So get a copy of your credit report and start addressing issues like debts that have gone into collections, a recent history of late payments, and so on. Once you have raised your credit score you can talk to your insurance provider about lowering your payments.
- Compare policies. One easy way to save on car insurance is to compare policies, and there are a couple of ways to go about it. The first is to opt for less coverage and the second is to take a higher deductible. Of course, if you’re paying off a loan on your car, you may not be able to take less coverage simply because the bank that holds your title will likely demand that you carry full coverage insurance until you pay off your loan. But if you’re a safe driver and you live in a safe area, you can still save on your insurance by upping your deductible.
- Ask about discounts. There are all kinds of discounts you may be eligible for through your insurance provider, but you might not know about them unless you ask. So talk to your agent about discounts for safe driving, good grades (for student drivers), multiple policies, safety features (in your car), anti-theft devices (like Lo-Jack), and so on.
- Play the field. If you don’t compare car insurance quotes then you’re doing yourself a great disservice. It behooves you to get quotes from several insurance providers not only so that you can get an idea of what different companies have to offer you as a consumer, but so you can try to get the insurance you want at the best possible price by asking for price matching and making companies really compete for your business.