9 Car Insurance Tips You Can’t Afford To Miss

Even though you are required by law to carry motor vehicle insurance, that does not mean that you are required to overpay for coverage.  The monthly insurance premium is a recurring expense that will have an impact on your budget for as long as you own a car, so it is imperative to shop for an affordable policy.

If you take the time to shop around, it is possible to find the perfect combination of insurance protection and and savings by selecting the right provider and policy.  Begin by determining how much insurance you are required to carry.  Insurance laws regarding the amount of coverage you need are specific to each state.

These 9 tips will help you save money by finding an affordable policy for your vehicle:

1.    Consider a higher deductible

While this means you will be responsible for a larger out-of-pocket expense should you get into an accident, you will save money every month through lower premiums.  Put the money you save each month into an emergency fund until you have enough to cover the higher deductible.

2.    Drive less

If you drive less than the average policyholder, some insurers will grant you a discount since less time spent on the road means you are less likely to get into an accident.  Try taking public transit or carpooling to work in order to lower your yearly mileage.

3.    Remove some clauses from your policy

If a standard policy has more coverage than you need, go over the coverage line by line and ask to have items you don’t want covered removed.

4.    Update your coverage regularly

As the value of your vehicle goes down over time, you might find yourself paying for coverage above the value of your vehicle if you haven’t updated your policy in a while.

5.    Bundle policies

Most insurers will grant you a discount if you insure multiple vehicles with them or move over your homeowner’s or renter’s policy.

6.    Be a good driver

If you have a good driving record you will almost always earn a discount, but sometimes you have to ask.  Some insurers will even grant an additional discount if you take a driving class.

7.    Improve your credit score

Some insurers calculate premiums based on your credit score.  Work to improve your credit and once your score goes up, contact your insurer to let them know.

8.    Drive a vehicle that you can afford to insure

A 4-door sedan that’s three or four years old is much cheaper to insurance than a brand new 2-door convertible sports car.  If you are looking to buy a new car, consider the cost of insuring it before you make a buying decision.  Find a car that’s a good fit for your budget.

9.    Shop around

The cost of premiums can vary wildly from one auto insurance provider to another.  The same goes for discounts.  Take time each year to request new quotes and compare your options before you renew your policy.

These 9 tips will help you find an affordable insurance policy for your vehicle that meets state legal requirements and provides you enough coverage to repair or replace your vehicle if you get into an accident.

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