The prices that insurance companies charge can vary greatly, even for what looks like exactly the same coverage – so make sure that you shop around. Here are four easy tips for saving money when buying car insurance.
1. Consider A Pay-Per-Mile Plan
If you make limited use of your vehicle, it may be worth looking at a usage-based insurance package. These bill based on how far you actually drive – and even on how well you drive. All you need to do is to fix a tracking device to your vehicle, which monitors your mileage and your driving habits. Insurers in some states also offer a pay-per-mile system where you pay a base rate which is added to based on the distance that you drive.
2. Raise Your Deductible
Your deductible is the amount that you have to pay for accidents or repairs before your insurance kicks in – and by increasing the level of your deductible, you can significantly reduce your monthly payments. While this can potentially save you hundreds of dollars a year, keep in mind that setting a high deductible may leave you out of pocket if you have to repeatedly take your car into the shop over minor issues.
3. Don’t Let Your Cover Auto-Renew
Insurance companies rely on customers rolling over their cover from one year to the next but doing so rarely offers the best value for money for you. Mark your renewal date in the calendar and make it a time to shop around and find the best deal possible. You’ll then hopefully save yourself some money in the process!
4. Drive carefully!
You probably know that accidents and speeding tickets drive up your car insurance premiums – so safe driving is one sure way to keep those payments down. If the worst happens and you do get a ticket then you may be offered the opportunity to go to “traffic school” and take some, or all, of the penalty as hours in class, instead. While you might not feel that your driving skills need sharpening up, doing so could save you some serious money on your monthly insurance premiums – so it may pay back in a big way to accept the offer.