How To Save Big Money On Car Insurance – Smarter Finance Journal

How To Save Big Money On Car Insurance

1) Shop around.Auto-InsuranceThe auto insurance system in our country is convoluted and difficult to navigate. Lack of proper knowledge prevents many individuals from being able to find the best deals for themselves. Too many people are overpaying substantially for car insurance because large companies have powerful mechanisms in place to trick and scam unsuspecting customers.

There are a few tricks that you can put to use to make sure that you’re finding the best possible deal for yourself — one that will save you money but also protect you and make sure you’re covered in the event of an accident or mishap.

Let’s take a look at a few of the best ways to lower your auto insurance premiums:

1) Shop around.

This cannot be emphasized enough. Too often people will go with the first provider they research, either because they don’t want to put in the effort for a more expansive search, or because they don’t believe they can find a better deal. You’re doing yourself a great disservice if you settle for the first rate quote you receive. There’s a good chance that you’ll be able to find a better deal for yourself if you take the time. Make sure to check in with providers both large and small.

2) Your car matters.

Newer and nicer cars mean higher premiums. That might seem counter-intuitive, as a more modern vehicle can often cost less to repair (and require fewer repairs) but the bottom line is that these automobiles have more value. If you’re in the market for a car and you can’t afford expensive premiums, consider going with an older model.
3) Higher deductibles.

A deductible refers to the maximum amount you’ll have to pony up on your own before the insurance coverage starts to kick in for an accident. By taking the highest possible deductible, you’ll ensure that you get the lowest possible monthly premium. Of course, this is a double-edged sword, because if you are responsible for an accident, you’ll pay more, but in many cases that added expense in the event of an accident is less than the total in long-term monthly premiums.

4) Always be open to change.

Sometimes people feel like once they’ve entered an agreement with an insurance provider, they’re locked in. This is especially true when signing up for a more lengthy term, such as a six-month prepaid period. It is important to remember that you can always leave your current provider and get all money that you’ve prepaid for your remaining coverage back. If you’re unhappy with your current situation, don’t be afraid to look around and opt out.

5) Look for deals and discounts.

Many insurers offer discounts to bring in new customers or to reward safe drivers. Search around and find deals that might apply to you because these can lead to real savings. There are group discounts, lowered rates for people who drive less frequently, savings for those who are willing to place a device in their car that tracks behaviors, and more.

By following these tips, you’ll surely avoid paying too much for auto insurance!

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