Car insurance is typically required by law. Most people choose an insurance company based on its popularity or recommendations from friends or family and continue paying their premiums twice a year. They often remain with the same provider for many years, which can sometimes lead to overpaying. However, there are several strategies to help you save money on car insurance:
– **Combine Your Insurance Policies**: By bundling different types of insurance with the same provider, you can get significant discounts. For example, I save $16 a year on my home insurance and $74 on my car insurance by using the same company for both policies.
– **Take Advantage of Low Mileage Discounts**: If you don’t drive often or prefer using public transportation, this can be a great way to save. Most insurance companies offer discounts if you drive less than a certain number of miles each year. For instance, my insurance company gives me a discount of $106 annually because I keep my mileage under 7,500 miles.
– **Attend a Defensive Driving Course**: Many insurers offer discounts to drivers who complete a defensive driving course. Check with your insurance provider to see if they recognize any local courses. For instance, my insurer offers a 5% discount on my annual premium for completing such a course.
– **Keep a Clean Driving Record**: Staying accident-free and avoiding tickets can significantly lower your insurance rates. For example, my family received a $100 discount after going ten years without any accidents.
– **Consider Semi-Annual or Annual Payments**: Insurers often charge convenience fees for more frequent payment schedules. If you can afford to pay your premium twice a year or annually, you might avoid these extra charges. To make this easier, you can divide your annual premium by 12 and save that amount each month.
– **Compare Rates Regularly**: It’s a good idea to periodically compare insurance rates from different companies. You might find better deals elsewhere. However, before switching providers, make sure to check their customer satisfaction ratings to ensure they handle claims well.
Saving money on insurance might not be everyone’s top priority, but it should be considered. By exploring these strategies, you can see a noticeable reduction in your yearly insurance costs. Spending a little time to make some calls or take a defensive driving course can result in substantial savings.