Auto insurance is a significant yet necessary expense, leading drivers everywhere to look for ways to cut costs. By gathering personal information, setting a budget, and determining coverage needs, you can find cost-effective insurance coverage that fits your lifestyle and preferences. Here are a few ways to cut the cost of auto insurance.
Look for Discounts
It’s a good idea to check with an agent once a year to determine if you can get a lower rate. For instance, it may be possible to bundle and save when purchasing auto and home insurance. Safety features and clean driving records can yield discounts, too. Ask your agent about coverage gaps and new offerings to find the best and most budget-friendly option for you.
Gather Information
Another way to save on auto insurance is to gather all the information a carrier needs. Make, model, VIN, safety features, anti-theft devices, location, yearly mileage, driver information, and household size all affect the rate you’ll pay. Depending on location, this data may help an insurance agent determine who and what should be considered when offering a quote.
Research When Buying or Leasing a Vehicle
As you’re buying or leasing a car, it can be tempting to go big—but it’s not always the best idea. The kind of car you have affects the rate you’ll pay for insurance, and agents consider numerous factors when creating quotes.
Learn About Coverage Requirements
Every state has car insurance coverage requirements, which typically become more complicated when vehicles are leased or financed. For instance, most lenders require collision insurance that covers the cost of damage sustained in an accident. Comprehensive coverage is another example; it covers losses due to vandalism, fire, and theft. Find out which coverage types you need—and how much it costs—before buying or leasing a vehicle.
Decide On Additional Coverage Types and Options
It seems counterintuitive, but extra coverage may help you save. Think of the financial effects of an accident where damage and injuries exceed your coverage limits. Insurance is there to protect you from these costs, and it’s crucial to find the right level of coverage.
Find Accident Forgiveness and Optional Features
A clean driving record brings big savings, but even the best drivers make mistakes. As you shop for auto insurance, consider savings through minor violation removal and accident forgiveness. These features, though optional, may help you avoid premium increases after an initial violation or accident.
Other features, like total loss deductible waivers, provide greater peace of mind. Ask an insurance agent about these add-ons if you have a clean driving record. Some carriers offer monitoring technology programs to score covered drivers, which may bring savings on policy purchases and renewal.
Follow These Tips for Savings
Now that you’ve found a few tips on cutting the cost of auto insurance, it’s time to get started. Check with your carrier, use your information to get personalized discounts, follow these tips, and save on the coverage you need.