5 Practical Tips to Save Money on Car Insurance

Car insurance companies are not all the same. Depending on the regulations and standards of the company, each one will offer you a different rate on your car insurance premium. The trick is knowing how to sort out the different car insurance rates so that you can choose the best insurance package and save money every month.

Top 5 Tips

Below are the top 5 tips for saving money on your car insurance.

  1. Insurance Price Comparisons – There are a lot of car insurance companies out there. Do not just join the first insurance company that you see advertised on television or the internet. Instead, go on the internet and search the time “car insurance rate comparison.” You will find websites which will present you with a table of different insurance companies and the estimated monthly premiums you would have to pay with them. Naturally, choose the cheapest one.
  2. Buy an Economy Car–Car insurance companies factor the value of your car when determining your monthly premium rate. If you have a cheaper economy car, like a Ford Fiesta, then you will have a lower monthly rate than you would if you were insuring a BMW.
  3. High Deductibles–If you are really looking for a way to reduce your monthly rates, you could choose an insurance plan with high deductibles for its collision and comprehensive coverage. Of course, you’ll have to pay these high deductibles in the event that you need to file a claim and use the coverage.
  4. Drive Well–The easiest way to save money on your car insurance is to not get into any accidents. If you have a history of clean driving with no accidents within the last 5 years, then you will see much lower rates. And if you stay with the same insurance company for 5 years, you may get accident forgiveness too.
  5. Get Bundled Insurance – If you already have another kind of insurance policy, like home insurance, then try to purchase your car insurance from the same company that issued your home insurance. Often times, insurance companies will reward their clients with discounted insurance for purchasing another form of insurance through them. The insurance packages get bundled up into one monthly price.

Read also: Tips for trading in a car with negative equity

There are so many ways to save money on car insurance. You just have to shop around, drive well, and choose an insurance package for an economy car that has higher deductibles.


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