Is it really any surprise that we want to know how to save money on car insurance? Though we all understand that it’s absolutely necessary to keep us on the road and financially protected, it’s nonetheless a frustrating strain on our budget. Unfortunately, shopping around is not always enough to find the best value cover that takes care of all our needs.
Our digital landscape provides us with more opportunities than ever before to obtain advice on our finances. To get content from experts, or reviews from fellow consumers. While we’re used to scouring the market for the best deals on products, saving on car insurance takes a little more work. The quote you receive will depend on a number of factors, from the type of car you drive to the behavior of family members you wish to add to your policy. Often the best route to obtaining a decent quote involves assessing your needs, adjusting your behavior, and considering signing up to programs in return for discounts.
We’re going to take you through a selection of your options when considering how to save money on a new auto insurance provider. There are preemptive steps you can take, and some ongoing good practices that can make a significant difference, too.
Take a Course
Let’s face it, we live busy lives and we don’t always have the time to take on additional responsibilities. However, committing to taking one or two educational programs can see your car insurance quote drop significantly. Most insurers will look particularly favorably upon potential customers who have taken a defensive driving course. This is particularly pertinent for certain high-risk groups, such as young or new drivers. There are also senior driving courses aimed at improving the safety practices of older drivers.
If you have received traffic tickets, or have a poor driving history in general, it’s worth researching what courses are available to you. Showing that you’ve taken genuine steps toward improving your habits can result in insurance discounts. These don’t always require you attend in person, many are available for you to take online.
We’ve become used to surrounding ourselves with a variety of technology, so why not utilize this when exploring how to save money? Many car insurance providers now offer packages that offer discounts in exchange for data on your driving habits. Apps coupled with plug-in tech, such as the Smart Ride device, collect information on everything from a distracted driving tendency to the pressure you apply to your brakes. This information is used to make real-time decisions on the risks your driving presents, and subsequently for more accurate decisions on premiums.
There are also pay-per-mile options on the market. For drivers who primarily take occasional short journeys, insurers will provide a tracking app that records journey distances. This data is then used to charge premiums on a monthly basis.
Pay All In One Go
Vehicle insurance is a significant investment, and paying this off by installments is often the only way most of us are able to fit it into our budget. That said, if you have been able to save back some of your disposable income, it’s definitely worth considering paying your car insurance in a yearly lump sum, rather than a monthly plan.
By allowing you to pay your policy in monthly installments, an insurer is essentially taking an additional risk on your ability to keep up with payments. As a result, depending on the insurer, you could see upwards of 20% added to the price of your overall yearly premium. If you’re able to, ask your insurer what discounts they will offer in exchange for a simple, one-off payment.
History of Other Named Drivers
If you have a family, it can often just be easier for you to add all drivers to the same policy. It’s less paperwork, you don’t have to shop around quite so much. Still, it’s worth bearing in mind that the history of other named drivers could be detrimental to your family’s overall yearly insurance premium.
In the case of a young driver, there’s really not much option here. It’s usually cheaper to add them as a named driver to your own insurance, rather than look for a provider of their own. However, if any of the drivers in your family have driving convictions or points on their driving record, this will raise your own premiums. It can be useful to weigh up how much money you’re really adding to your policy by keeping them as a named driver.
Finally, one of the fastest ways to see savings on your car insurance is by taking time to consider how much of the risk you’re personally willing to shoulder. In the event of an incident, a deductible is the first amount of any resulting costs that are paid by the insured party. Policies without a deductible are usually more expensive because the entirety of the risk is being taken on by the insurer.
Policy providers will usually provide quotes featuring different levels of discount, depending on how high a deductible an insured party is willing to pay. This is where you’ll need to take a moment to honestly assess your situation. What risks do you take while driving each day? Do you park your car in high-risk areas? If you genuinely feel that you are unlikely to require making a claim, it’s worth discussing with your insurer about how to save money by agreeing to a higher deductible.
Brian is a dad, husband, and an IT professional by trade. A Personal Finance Blogger since 2013 who, with his family, has successfully paid off over $100K worth of consumer debt. Now that Brian is debt-free, his mission is to help his three children prepare for their financial lives and educate others to achieved financial success. He blogs at Debt Discipline.