Clever Ways to Save Money on Car Insurance
Car insurance is a necessity, but it can also get expensive. If you are like many other drivers, you want to find a way to make it more affordable. While shopping around for the lowest premium and choosing only the coverage you need is a good way to save, there are other ways you can get the most for your money too.
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Pay for the Miles Driven
Did you know that even if you only drive a little bit, you pay just as much for car insurance as the guy down the street that drives hundreds of miles a week? You can change that, though. it’s called pay-per-mile insurance. This insurance costs you a base rate, plus a premium per mile. The base rate is usually a fraction of the total premium you pay on standard insurance. It only pays off if you don’t drive more than 10,000 miles per year.
Pay Your Premium in Full
Do you pay your insurance premiums each month? Did you know that could add close to $100 to the amount you pay? Insurance companies charge you a service fee for each month that you pay the premium. If instead you paid it every six months when the new bill comes out, you could save money right off the bat.
Be an Honor Roll Student
Insurance companies reward teen drivers with at least a B-average with lower premiums. Studies show that students with higher GPAs are less likely to make reckless decisions while out on the road, lowering their risk of an accident.
In order to get this discount, you must be a full-time student in either high school or college. The discount will vary by agent as well. It’s important to shop around and show off those good grades to see what types of discounts you may get.
Keep Your Credit Score High
Your credit score helps you do more than take out a loan; it can also help you get better car insurance rates. A driver with a good credit score is known as a responsible person. Typically, responsible people make smarter decisions on the road, putting the insurance company at lower risk of having to pay out on a claim on your behalf.
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Shop for Car Insurance Annually
While it’s a pain to shop around for insurance every year, it’s worth it in the end. When you shop around, you might find that the agent down the street is willing to give you a better deal than your current agent. Once you establish a relationship with an agent, he doesn’t have to work as hard to keep your business. Unless you shop around, you are likely to just pay the premiums he charges and maybe not even realize that the rates increased. If you shop around though, your agent may give you a lower premium. If he doesn’t, you are always free to head to another insurance company without facing any penalties.
Increase Your Deductible
The higher your deductible is, the lower your premiums may get. You will always pay a premium, but if you are willing to accept more responsibly should an accident occur, the insurance company will charge you less for your premiums.
Don’t take a deductible you cannot comfortably afford should something happen, though. Do the math and make sure you can pay the deductible without any issue. If you can afford it, then go ahead and reap the savings of the lower premium so that you can save on a regular basis.
These simple ways can help you save on your car insurance. Of course, it helps if you are a good risk, meaning you don’t have many claims in the last few years. Insurance companies keep track of the number of claims you make. Being a responsible driver and making good decisions can be the best way to help keep your rates down and money in your pocket.
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