Cut The Monthly Cost Of Auto Insurance
When trying to manage a tight budget each month, it is important that you look into all of the different ways that you can save money. One way that you can save is by cutting the cost of your monthly payment for auto insurance. To do this, use the guide below.
If you are able, try increasing your deductible on your policy. If you have a lien on your car, you may not be able to increase it as much as you would like. Oftentimes, if there is a loan on the car, the bank will require you to have a deductible of no more than five hundred dollars. If there is no lien, increase it to as much as you are comfortable paying if you should get into an accident. The higher the deductible, the lower the monthly payment.
If you have no lien on your car and your car is not worth more than five-thousand dollars, you may want to consider dropping your collision coverage. This is the most expensive coverage to have on a car and by not paying for it, you could save hundreds each year. Most states only require you to carry liability insurance to remain legally able to drive the car.
If you have medical insurance, there is really no need to duplicate it through your auto insurance. You may be able to opt out of your medical coverage on your auto policy and just use your other health insurance if you are in an accident.
When you are shopping for a car, learn how much it will cost you to insure it prior to buying it. Different models of cars will cost you different amounts each year. Spending some time researching the cost of insurance will help you decide which car is really in your budget.
You can reduce the number of miles that you drive your car each year. The less you drive it, the less you will have to pay to insure it. Take the bus, carpool or limit the trips you make to the store to cut your miles each month.
If you have children that are coming of driving age, learn about the things that you can do to reduce the cost of adding them to your policy. Your insurance company may offer a good student discount or a driver’s ed discount. These could drastically decrease the cost of adding them.
Drop the roadside assistance. Many times, what you are paying each year is much more than what you would pay for a tow if you need one. This could save you up to a couple hundred dollars each year
Take the time to get new quotes from different companies each renewal. If you do not, you might be paying too much for your policy through this one company because you did not take the time to learn how much another company is offering the same policy for.
Most of these changes are simple to make and will only require you to make a call to your agent. Put them to use and start saving today.