Car insurance is essential. Not only does it provide you with peace of mind, but it also keeps you in compliance with state laws. Unfortunately, it can also be pricey. If you're trying to make some extra room in your budget, re-evaluating your car insurance is a great place to start. There are numerous ways to make car insurance cheaper without sacrificing coverage. Use some or all of these tips to get the best possible rate.
Step 1
Get a new quote from your insurance company. The National Association of Insurance Companies advises all policy holders to re-evaluate their needs yearly, but most people simply renew without question. Re-evaluating your policy and your needs might reveal new discounts. For example, if you've returned to school, you may qualify for a good student discount. If your credit score or driving record has improved, you may also qualify for a lower rate. Even seemingly minor changes, such as where you park your car, can affect how much you pay. Call your insurance company and ask it figure you a new rate from scratch rather than using your existing information to renew your policy.
Step 2
Look at every type of insurance you carry. Your health insurance might cover some of the medical expenses covered by your car insurance. Likewise, homeowner's insurance may also extend to some aspects of your vehicle. Checking these overlaps helps you save money by not paying for the same coverage twice.
Step 3
Extend this double-pay theory to other expenses. For example, you might have roadside assistance from your car insurer, your auto club package, your cell phone carrier and your coupon benefits club. If that's the case, you could easily remove this service from your auto premium. Check these, rental car coverage and other perks against other services you use.
Step 4
Get a discount for combining services. According to editors at Bankrate.com, virtually all insurance companies offer discounts if you agree to use their services for your car, boat and home. This also offers you the convenience of paying one bill to one company. It also saves you from overpaying for services that overlap between policies.
Step 5
Pay your whole policy balance up front. Many insurance companies charge fees for installment payments. You'll find you can get a substantially lower rate if you're willing to make one initial payment. Check for automatic draft or online bill pay discounts if you must make payments.
Step 6
Raise your deductible. A higher deductible, in many cases, equals a lower premium. The downside to this is that you'll have to pay your deductible out-of-pocket if you're in an accident.
Step 7
Consider switching companies. Get quotes from multiple agencies and see which plans offer you the lowest rates. If you'd like to stay with your current insurer, use the lower rate quotes to negotiate. Your insurer might be willing to work with you if it means keeping your business.
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