Anyone who has ever had to work for a living and manage the costs of living knows how very important it can be to budget living expenses, and reduce them to as low an obligation as possible. It’s easy to cut out things like fast food, entertainment, and miscellaneous shopping costs, but it’s also helpful to know that you can cut costs associated with the necessities, too. One such bill that can be adjusted is your automobile insurance bill. Here are seven tips for saving money on automobile insurance.
Deductible. The deductible is the amount you are responsible for paying should you ever be in the situation to have to make an insurance claim. Let’s say you get into a little fender bender. If your deductible is $500, then you will have to pay the first $500 and the insurance company will have to pay everything after that. A very simple way to lower your insurance bill is to raise your deductible. That only makes sense, considering a higher deductible for you means less out of pocket for your insurance company.
Medical coverage duplications. If you have health insurance with medical coverage, then it is just not necessary for you to carry that same coverage through your automobile insurance company. It’s not like the insurance companies are going to pay double your bill, and you shouldn’t either.
Choice of vehicle. Drive a car that’s cheap to insure. If your car is safe, easy (and inexpensive) to work on, and not too tempting to thieves, then you can expect to pay much less for your insurance than if you were to drive a European sports car, per se.
Low mileage. Many insurance companies offer low mileage discounts, so try to drive your car less often. Car pool, take public transportation, or even walk or ride a bicycle when possible to lower both your car insurance bill and your carbon footprint.
Safety gear. The more safety features your car has, the less expensive your insurance bill will be. This pertains to air bags, anti-lock brakes, automatic seatbelts, and car alarms.
One carrier. You can often get a discount on insurance by purchasing all of your insurance needs — homeowner’s, health, life, and auto — through one carrier.
Special discounts. Ask your insurance company about any and all special discounts that they offer. You might be surprised at what you qualify for, for being a student (or a parent of a student), a senior, a safe driver or more.
There are many ways to cut back on your auto insurance bill. Call your insurance carrier today to see how many of these tips apply to you.
About the Author: Dona Collins is a freelance writer with a passion for saving money. When she’s not writing about personal finance she can be found teaching college graduates how to use IT staffing services and agencies to find new work.
