Auto insurance is a big expense for many consumers. But, there are a handful of ways that you can save money on auto insurance. You just have to be willing to find them. In this post, I list 5 ways to save money on auto insurance. I think you will find that most are ones you never thought of previously. So what are you waiting for? Read on to see if you can apply these to your situation and start saving money today!
Own A Common Car
The amount you pay for car insurance is tied to the type of car you drive. If you drive a sporty car, expect to pay more for insurance. But along with that, the more popular the car is with thieves, the higher the rate of insurance you will pay as well.
Every year, the government releases a report telling consumers which cars were the most stolen over the previous year. Some cars are on the list simply because so many people drive them (I’m looking at you Toyota Camry and Honda Accord). In these cases, your insurance won’t really be affected by the rate of thievery.
But when you look at other cars, like a Land Rover or a Cadillac Escalade, the story is different. These cars have a higher insurance cost because they are stolen. So before buying your next car, pay attention to how often it gets stolen.
Pay Attention To Discounts
All insurance companies offer safety discounts to their customers. These include airbags, anti-lock brakes, security systems, etc. The safer the car, the lower the insurance premium. The reason for this is because there is a lower likelihood of medical costs should you get into an accident. The lower the potential costs to the insurance company, the lower the premium you pay.
Most insurance companies have a database that lets them know what types of safety systems you car has. But it is smart to go over everything to make certain nothing is overlooked.
Duplicate Medical Coverage
Speaking of medical coverage, did you know you have medical coverage provided by your insurance? If you have other medical coverage, it might make sense to cancel the medical coverage on your auto insurance policy. Doing this could save you up to 40%!
Before you run out the door to cancel your medical coverage, make certain you understand how it all works. For some insurance companies, the medical coverage on your auto policy only kicks in after your regular health insurance pays.
In other cases, your auto insurance medical coverage only applies in certain circumstances. The bottom line is to make sure you fully understand how the two work. Only after this can you safely consider canceling your medical coverage provided by your insurance policy.
Low Mileage Discount
Some insurance companies offer a low mileage discount. This means that if you drive your car for less than 7,500 miles in a year, you can get a lower premium. My parents take advantage of this. They have a sports car that they only drive during the summer months and garage the rest of the year. As a result, they have a lower insurance rate since they don’t drive it that much.
Is Your Car Antique?
In most states, when a car is 25 years old, you can get an antique license plate for it. You may be wondering why you would do this. The reason is to save money! My friend has an older car that he loves. It’s from the 1970’s. He scoffed at getting antique plates for it for years. Then one day he decided to get them.
When he called his insurance company to give them the new plate number, he found out his insurance premium dropped by 50%! He was floored. He then kicked himself for not getting the antique plates earlier.
Before you go do this, know that there typically is a cost for antique plates (around $100) and you might not get as large of a savings that my friend did. It’s best to check first so that you aren’t disappointed.
There are many ways save money on auto insurance. If you apply just a few of these tips, you could save yourself a decent amount of money. Of course, you should also talk to your insurance agent about any additional discounts you might qualify for or other ways to reduce your premium. You can get quotes from reputable insurance companies like Liberty Mutual and Allstate. Most agents will be more than happy to help you. After all, they would rather keep you as a paying customer than have you go somewhere else and not make any money at all.