When it comes to paying your car insurance, it can take a big chunk out of your paycheck, but there are some ways you can cut the costs.
It’s important to note that not all insurance companies are the same, and not all of these tips work everywhere.
The first thing you can do to save money is to self-insure as much as you can afford. Do this in the following ways:
Remove towing. This can cost $10 to $30 a year, but if your car is well-maintained, you don’t need the extra costs. In the event of an accident, towing is almost always covered under collision.
Remove car rental. Small economy cars cost about $20 to $25 per day to rent. Car rental is $20 to $40 per year. Play the odds. If you rent a car on vacation, your insurance will cover you while driving that car. Don’t pay for the extra coverage.
Here are some other ways besides self-insuring to cut costs:
Shop ahead. Don’t assume that SUVs are expensive and small cars are not. Insurance companies will increase your liability based on the cost of damages your type of vehicle may inflict – big trucks cause big damage. However, they also rate the autos based on how likely they are to be damaged in an accident, how often they are stolen, and how badly driver/passenger are injured. Many companies will have websites that will give you lists of safe and lower priced cars.
Think twice about after-market gizmos. If your vehicle is totaled or stolen, the insurance company will determine a fair market or actual cash value. They will look at your vehicle as a “whole package.” Even if you paid for $3,000 in wheels, spoilers, stereos, etc. they may only add $1,000 value to your vehicle. It’s not dollar for dollar.
Have all of your insurance in one place. Often, the more types of policies you have, the more you save in discounts.
Find out if your insurance company offers any low-mileage breaks that you qualify for.
Can you take a safety-driving course? Some companies offer a discount for this.
Do NOT pay monthly. Your carrier will charge anywhere from $3 to $5 per month for this type of billing. Instead, pay every six months.