We may not like to make those payments, but when auto insurance comes to the rescue, it can come as quite the relief. However, our safeguard doesn’t always have to be such a burden of payment, and there are easy steps that every car owner can take to lower that bill and save a significant sum of money every year. Here are three great tips for lowering your auto insurance bill, whatever your history may be.
- Decrease the Amount You Drive – Your mileage per year is a crucial factor for many car insurance companies, and they use this information to help determine your auto insurance rate. Of course, distance driven is not a choice for some people, but there may be options you have not explored. In some areas, public transportation is a viable, easily accessible option. In other areas, riding a bicycle or walking to work or the grocery store could help. Also consider carpooling. One or a combination of all of these strategies could add up to decrease the miles you drive per year, which in turn could decrease your insurance rate by a whopping 25% – and that is in addition to the money you will save on fuel.
- Know Your Needs – Required auto insurance coverage varies depending on your circumstance. For example, a car that was bought with a loan and is currently being paid off is required to be covered with both a comprehensive and a collision policy. Collision coverage covers damage that occurs as the result of an accident, and comprehensive coverage covers other damages. Check with your insurance company to find out what coverage is required in your circumstance, and consider what, if any, coverage might be advantageous to drop.
- Purchase Insurance from One Company – In many cases, purchasing different insurance plans (homeowner’s insurance, life insurance, etc.) from one company may lower your rates across the board. Talking to an insurance broker when considering what to buy and where may be the best way to assess this strategy; a broker can give you the best options out there on the market for your particular situation.