Auto Insurance Hacks to Slash Your Premium

Auto insurance is an unavoidable expense for most drivers, but there are ways to keep it as low as possible. You can save yourself money by cutting your car insurance costs with these simple and effective hacks.

Choose a Cheap Car

The more expensive the car, the more expensive its insurance premiums will be. If you’re looking to save some money on auto insurance, it’s best to buy a basic model. If you have your heart set on a certain car, try getting a less expensive trim to cut the premium costs.

Raise Your Deductible

The deductible is the amount you pay toward each claim before your insurer starts reimbursing you for losses. The higher your auto insurance deductible is, the less you’ll pay in premiums every month — but it also means paying more money out-of-pocket if something goes wrong.

Pay Your Policy in Full

If you pay your policy in full instead of making monthly payments, you may qualify for a discount that could save you money on your premium. Many insurers offer this incentive because it gives them more certainty that they’ll get their money.

Check for Discounts

Many insurers offer discounts to customers who meet certain criteria. These might include taking a defensive driving course, having an alarm system, or installing anti-theft devices in your car. The thing is, insurance companies typically don’t inform people that they qualify for discounts.

Don’t Forget About Bundling

If you own more than one car, consider bundling them together under one insurance policy. It may cost less than two individual policies and will give you more flexibility when making changes down the line. You can also ask the insurance company if they offer a bundling discount if you purchase other insurance plans, like, say, renters insurance or home insurance, from them.

Review Your Coverage Levels

Think about how much you pay for car insurance each year and whether you could save money by dropping some coverage. Next, consider canceling your comprehensive and collision coverage if you’re paying 10 percent or more of the total value of your vehicle each year to your insurance provider.