This blog post may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services.
Owning a car is essential for many people, but insurance costs can make it something you believe is out of your reach. You might have heard what other people pay for insurance or think your unique circumstances could make it cost more than you can afford. However, what other people pay for car insurance doesn’t have to be what you pay. Gain insight into easy ways to save money on your car insurance below.
Buy a New Car
If you’re in the financial position to afford a new car through frugal living and saving, you may benefit from lower car insurance premiums as a result. Many car insurance providers offer significant discounts if you are the first owner of a brand new vehicle.
There are usually some terms and conditions, but the main ones are that the car is a current model or from the previous year, and you’re the very first owner. Now might be the time to go car shopping to ensure you’re eligible for this generous discount option.
Bundle Your Insurance Policies Together
If not for the sake of organization, then consider bundling your automotive insurance and renters or home insurance together for money savings. There’s no denying it’s much easier to communicate with one insurance company rather than several, but many companies also value loyalty. If you have all your policies with them, you may be eligible for multiple policy discounts that come with significant savings.
Set Up a Payment Plan
You may think you’ll just remember to pay your insurance each month or year, but more pressing problems can make insurance payments fall by the wayside. However, you can be rewarded for prioritizing your payments, making it even more important to take control of your insurance premiums.
Many insurance companies offer discounts when you opt for automatic withdrawals from your bank account. You’re essentially being rewarded for making your life easier. Instead of having to remember to make manual payments, your chosen insurance provider automatically takes the money out of your bank account when payments are due.
Take Advantage of Young Driver and Student Deals
Many insurance companies see the value in promoting excellent driving habits from a young age, so they reward drivers who put steps in place to become competent, safe drivers.
You may discover that your preferred provider offers discounts for young drivers who are students with certain grades or GPAs and complete driver education training. Your dedication to building and reinforcing safe driving behavior in your young family members may serve you well.
Go Paperless
Over 15 billion trees are cut down each year, with just one capable of producing over 8,300 sheets of paper. You may not single-handedly stop trees from being cut down for paper production, but going paperless with as many businesses as possible may make a difference.
Some insurance companies provide an incentive to do so in the form of money savings when you opt-in to receive your policy documents online. Going paperless also means you can store your policy information somewhere safe and review it no matter where you are.
Pay Your Policy in Full
Many people find it more convenient and manageable to pay insurance premiums over the course of a year. These payments might be weekly, fortnightly, or monthly and suit those who may not have the financial means to make one lump-sum payment.
However, if you are in a position to pay for your policy upfront, consider doing so. You may end up paying less, which leaves more money in your back pocket for other expenses or luxuries. Many insurance providers offer this option, so ask about it when you’re shopping around for insurance quotes.
Be a Responsible Payer
Life gets busy, and if you haven’t signed up for automatic payments, you may forget to cover your regular insurance costs and experience a cancellation notice for non-payment as a result. Whether you intend to or not, non-payment can impact any policies you take out in the future.
However, if you prioritize payments, don’t miss any, and haven’t received a cancellation notice, you may be rewarded. Some insurance providers offer discounts for responsible payers, allowing you to save money to put towards other costs like college tuition.
Sign Your Policy Early
Insurance policies renew every year, and you may be required to sign paperwork to keep your current policy. Depending on which insurance provider you’re with, you may be encouraged to sign at least a week before your policy to enjoy discounts.
Buy a Car With Safety Measures
Some of the newest cars on our roads are the safest, with various safety measures in place to reduce the risk of car accidents and injuries. There’s no way to prevent all accidents or injuries, but you may be surprised at how some features may play a part in a positive outcome.
Anti-lock brakes (ABS) are a prime example of this. ABS allows drivers to stop their vehicle from skidding when they have to apply the brakes sharply. In cars without ABS, sharp application of the brakes can result in your wheels locking up, leading to a loss of traction and steering control. You may then crash as a result.
If your vehicle has anti-lock brakes, you may be seen as having a reduced risk of being involved in an accident. Insurance companies may appreciate this and provide discounts on your policy.
Invest in Anti-Theft Devices
Hundreds of thousands of vehicles are stolen every year, and there’s no way to prevent every single theft. However, poorly secured vehicles that aren’t locked or have no alarms may be more at risk than those stored in secure garaging with alarm systems and anti-theft devices.
Take all necessary precautions to keep your vehicle safe, such as parking it in a secure lot, locking it, and installing alarm systems and other devices, and you may be able to benefit from lower premiums. Insurance providers look kindly upon vehicle owners who go above and beyond to protect their vehicles from theft.
Car insurance is something everyone must have to protect themselves and their vehicle, but many people worry about the cost. If you do any of these things above, you may find yourself with far more affordable premiums than you may have thought possible.
Become an Insider
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.
