Saving money is always on everyone’s mind, and thankfully, when it comes to car insurance, there are plenty of ways to cut costs without sacrificing your coverage. Go-to spaces for sharing advice and personal experiences like Reddit feature plenty of tips on how to save on everything from groceries to insurance premiums. We’re bringing you the best tips for saving money on car insurance all in one convenient place.
1. Shop Around and Compare Quotes
One of the most common pieces of advice is to shop around and compare quotes from different insurance providers. Many users share their experiences of saving hundreds of dollars simply by taking the time to compare current rates every six months to a year. Insurance rates can vary widely between companies, even for the same type of coverage. Check out comparison websites or work with an insurance agent to help you find the best deal in your area.
2. Increase Your Deductible
Another popular tip on Reddit is increasing your deductible. The deductible is the amount you pay out of pocket before your insurance kicks in. Raising your deductible can help to lower your monthly premium significantly. You can even set aside the amount of your new deductible in savings, so you’re still prepared if you end up needing to file a claim. This can be a great strategy for drivers who have a strong driving record and don’t often make insurance claims.
3. Bundle Your Policies
Bundling your insurance policies is a tried-and-true way to save money, and Reddit users often recommend this option. By combining your car insurance with other types of coverage, like home or renter’s insurance, you can potentially score a major discount. Just be sure to compare the bundled rate with what you would pay separately for each policy to make sure it’s actually saving you money.
4. Ask About Discounts
Reddit threads are also full of tips that involve asking your car insurance company about discounts you might not even know about. In fact, many folks recommend calling your insurance company directly to ask about any available discounts. Common discounts include good driver discounts, low-mileage discounts, and even discounts for things like having specific safety features in your vehicle. If you’re a student or recently completed a defensive driving course, make sure to mention this as well—there could be extra savings available for you!
5. Maintain a Good Credit Score
This tip might come as a surprise, but many users talk about how your credit score can impact your car insurance rates. Insurance companies may use your credit score as one of the ways they determine your premium, with higher credit scores leading to lower rates. If your credit score could use some improvement, strategies like paying down debt and making all your payments on time can help.
Additional Money-Saving Tips for Car Insurance
Along with these top five tips, here are a few more quick suggestions from Reddit users to help you save even more on your car insurance:
- Pay Your Premium Annually: Many recommend paying your premium annually instead of monthly because some insurance companies offer a discount if you pay upfront.
- Remove Unnecessary Coverage: If you have an older car, consider dropping comprehensive and collision coverage, especially if the cost of the coverage exceeds the value of the car.
- Drive Safely and Avoid Accidents: Maintaining a clean driving record is one of the easiest ways to keep your insurance costs down. Avoiding tickets and accidents can end up saving you hundreds of dollars each year!
Save with SIG
Navigating car insurance doesn’t have to be overwhelming, and with these tips, you’re sure to find ways to save. If you still need some guidance, be sure to connect with the team at Signature Insurance to learn how to lower your costs without compromising on the car insurance coverage you need.