Insurance

3 Insider Tips That Could Reduce Your Car Insurance Payments

Car insurance is a necessary expenditure if you own and drive a vehicle. While you might not love the thought of paying hundreds of dollars every month, the reality is that 6 million car accidents happen in the U.S. every year. If you happen to be involved in one of them, having excellent car insurance can ensure you won’t be responsible for covering outrageous costs related to vehicular and property damage or even injuries.

However, that doesn’t mean that you need to pay a small fortune for car insurance. You can still save some money every month and benefit from good coverage if you become one of the 3 million people injured each year in U.S. car accidents. Here are just three insider tips that could help you reduce your monthly car insurance payments.

Improve Your Credit Score

A lot of people fail to realize the connection between their credit score and their car insurance. But insurers consider more than the make and model of your car or your driving record when they determine the cost of your premium. In some cases, your credit score can be even more important than whether you’ve been involved in prior accidents! While it does pay to be a safe driver, it’ll also benefit you to do what you can to improve your FICO score. If you make all payments on time, refrain from opening new credit cards, and stay below credit limits on all existing cards, that may go a long way when it comes time to insure your vehicle.

Ask About Discounts

One money-saving method that many drivers overlook is the simple act of asking about available discounts. Unfortunately, insurers won’t offer these discounts upfront. But if you ask about the discounts for which you might be eligible, you could be pleasantly surprised. Aside from safe driving discounts, there may also be savings available for current students, cars with safety upgrades or anti-theft features, bundled insurance policies, multiple vehicles, defensive driving course completion, low-mileage drivers, and more. While these discounts might not seem all that substantial at first, they can absolutely add up over time. By taking advantage of them, you could save quite a bit.

Get a Fresh Quote Every Year

Around 42% of underwriters worked with direct insurance carriers in 2018 to determine insurance risks for prospective clients. While there may be some circumstances out of your control (like the age of your vehicle or any accidents in your history), that doesn’t mean you’ll get the same rate from every insurance company out there or that your current insurance policy will always be the best possible option. It’s generally a good idea to shop around and obtain quotes from different providers each year to determine whether there might be savings you’ve been missing out on. Although you might simply want to renew your current insurance to get this task off your to-do list, shopping around could save you more than $100 per month in some cases. It might take a bit of time and effort, but the savings you’ll enjoy will probably be well worth it.

Purchasing insurance will always feel like a bit of a gamble. But most agree that it’s better to be safe than sorry. Still, you don’t have to spend all of your savings just to obtain insurance coverage. By referring to these insider tips when it comes to buy or renew, you can keep car-related costs a bit more manageable.