If you own a car, you must purchase car insurance. It's something every car owner must budget into their monthly bills. In some cases, you might feel like you're paying too much, and it might be true. So how do you save money on this expense? Here are a few tips to help you save on your car insurance policy.
Bargain Shop for Your Policy
You're probably overwhelmed by all the car insurance commercials with celebrities and adorable animals, but you need to take the time to bargain shop. Don't just go with a name brand. In the modern age, it's a cinch to go online and get quotes for your insurance needs.
Try to get at least five quotes before selecting the best choice for you. It's a good idea to make sure to compare apples to apples. This means that you want to double check that all the policies offer the same benefits.
Since your policy only lasts six months, it's beneficial to check prices each time the policy period comes to close instead of just renewing the existing policy. You can spend a little bit of time to ensure your company continues to offer the best rates.
How Are You Paying for Your Policy?
If you've set up your insurance policy to automatically debit your monthly payment on a credit card, then you might be paying an extra charge for this. Some insurance companies charge up to five to 10 dollars each month to use a credit card. Check with your insurance company to see if this is the case. While the company may charge for the use of credit card, many don't charge if you use an electronic check that's linked to your bank account. This charge occurs because credit card companies charge your insurer a percentage of the total for running the card. While five dollars might not seem like a lot of money, you could pay one month of your water bill with the yearly total of $60.
You probably pay a down payment and the balance of the policy in five monthly installments. If this is the case, it's a good idea to check if the insurance company is charging you for setting up the payments that way. You may find that the company charges you a monthly fee or a flat fee for breaking up the cost.
If you can't afford to pay the entire amount, you might consider saving up until you have the cash on hand. Once you pay for a six-month policy in one payment, then you can save the monthly payment each month, so you have the full payment on hand for renewal.
Bundle to Save
When it comes to insurance, you can save money by using one company for all of your needs. You probably already have home or renter's insurance as well as your car insurance policy. If you use a single insurer for both policies, you might find that you save some money on both policies.
If your current company doesn't offer a discount for bundling, then it's time to do some price comparison. You can add and bundle a variety of insurance policies, including:
- and others
What Does Your Insurance Cover?
When you buy a new car, your loan agreement requires you to carry full coverage. You only need basic coverage when you own your car. It's a good idea to determine exactly what type of coverage you have and need to ensure you aren't paying for items you don't need.
Car insurance companies add other items, such as roadside assistance, to policies that you might not need. The amount of your deductible is another area where you can save money. The lower your deductible is directly related to the cost of your policy. If you don't mind a high deductible, you can lower your costs.
With a little research and bargain hunting, you can lower the amount of your car insurance. You can use that extra money to save up for a new car.