Simple Ways to Reduce Your Car Insurance

 Simple Ways To Reduce Your Car Insurance.

Insurance is a must have for all drivers, but can become very expensive depending on your circumstances.

There are numerous practical ways that a driver can save on car insurance, some easier than others.  Here are a few ways to keep your insurance policy from breaking the bank.



Increase Your Excess

One of the most well-known ways to save money on car insurance is to increase your excess.

The excess is the out-of-pocket amount that drivers must pay after an accident before your insurance coverage officially begins. Higher insurance premiums typically have lower excesses, which can be beneficial right after a collision. If you don’t mind having higher out-of-pocket costs, then adjusting your excess is a great way to save money.


Shop Around

Before finally settling on an insurance policy, it is always good to shop around. Comparing quotes from multiple insurance companies is a simple and effective way to do this.

Many websites offer tools that allow you to quickly compare multiple quotes by answering basic questions about your driving record, finances, and vehicle. This is far more convenient than scouring multiple websites or calling around.



Keep an Eye on Your Credit Score

Maintaining a high credit score can also help with your insurance costs. A higher FICO score translates to lower monthly costs. Insurance companies consider drivers with lower credit scores to be a greater financial risk.

By maintaining an attractive credit score, you can save a substantial amount of money, for example on your auto insurance in Charleston.


Combine Policies

Bundling has become a popular way to save money on car insurance. The majority of insurance companies offer homeowner’s, rental, life, and other various types of insurance.

In an effort to entice buyers to purchase multiple policies, discounts are typically offered to drivers who choose to bundle. Your savings will vary depending on the type of policies you select and various other financial factors.



Lower Mileage, Bigger Savings

Many insurance companies offer low-mileage discounts. In short, the less you drive, the more you can save. In recent years, some companies have offered electronic tracking devices to keep track of speed and mileage. Experts say that installing a tracking device can reduce your premium by up to 60% for good driving habits. Drivers may also receive a discount for carpooling since it reduces mileage.


Inquire About Special Discounts

In an attempt to boost business, many insurance companies offer various discounts. Working for a particular organization or company can oftentimes warrant a discount. Students oftentimes receive lower rates for maintaining good grades or passing a driver’s education course. Long-time customers of a single company may also find themselves eligible for lower rates. The easiest way to learn about these discounts is simply by calling the company directly.


Final Thoughts

The universe of car insurance is vast and complex. This means that there is no “one-size-fits-all” approach to anything and rates vary from company to company Regardless of this unpredictability, there are practical and reliable ways to radically reduce your insurance costs.

You shouldn’t have to settle for an overpriced policy when owning a car is already expensive enough.

5 thoughts on “Simple Ways to Reduce Your Car Insurance

  1. Thanks for your tips about how to save money while shopping for car insurance. You make an excellent point about how having a better credit score can help you save on your policy plan. It’s a good idea to check your credit score before you buy. You can also be planning ahead and try to improve your credit score as well.
    Aaron Kriegerson recently posted…Auto Insurance FraudMy Profile

  2. If you are a safe driver, it seems like increasing excess could really help lower car insurance costs safely. I have never gotten in an accident, but it seems like if the damage was not bad enough to go over the premium, that it would be pretty easy to take care of yourself. Thus, having a higher premium would help keep month-to-month costs lower.

  3. I like your idea to shop around for different policies. I had the same insurance policy for my whole life, before I decided to shop around. I got a huge discount that I never knew I could get. Like you say, many websites even let you compare multiple quotes!

  4. I was somewhat surprised by your suggestion to lower insurance rates by increasing your excess. I usually think of auto insurance as a tool to lower your out-of-pocket costs after an accident. However, insurance does cover a lot of other things, and if you’re a safe driver and don’t get into accidents often, increasing your excess might be a good idea. Thanks for the information.

  5. These are all decent ways to save on car insurance. Besides, I would like to suggest not buying a high-end car such as sports car. This is crucial for those who are under 25 years old because young drivers have the lack of experience behind the wheels. Hope this helps.
    Patrick recently posted…Inexpensive Named Operator PolicyMy Profile

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