If you drive a car, and these days who doesn’t, you know one of the largest expenses associated with operating a car is the insurance. Car insurance mandatory in almost all the states, so no getting around carrying it.
Gas prices are dropping and hopefully will continue to drop, but it is the monthly insurance bill that is the single largest expense. And insurance rates have not been going down over the years, many of us may be paying $100 a month or more.
So how can we try to reduce our car insurance costs?
There are a few ideas, tips, and pointers we can look at which can help to reduce that bill. Not all the tips and ideas will work for everyone, and some people may be able to use a couple of the tips together and really save some hard earned bucks.
Your Type of Car
This is a no-brainer. Insurers base premiums on statistics for various cars on the road. If you have a car that thieves like to steal, such as a Honda Accord, your insurance premium could be higher than someone who drives a Ford. Also, fast sports cars will carry a higher insurance rate as well. This is something to keep in mind when the time comes to purchase a new car. Inquire about the cost of insurance before making the purchase.
Some insurers will reduce your premium if you keep your mileage under 6,000 miles a year. There are also pay-as-you-go auto insurance as well. The less you drive, the more you save.
Telematics or Black Boxes
Some insurers will reduce your car insurance if you have a telematic system or “black box” installed in your vehicle. This box monitors your driving habits such as speed, braking, etc, and determines if you are a safe driver or not. Some insurers are offering premium reductions if you have one in your car. There is talk of these becoming mandatory in the future.
Another no-brainer, if you don’t have accidents or place claims against your policy, you can be rewarded by a lower premium.
This ties in with placing claims, keep your drivers license clean, meaning no points for speeding, or reckless driving. It goes without saying no DUI’s. Never drink and drive!
Increase Your Deductible
By increasing your deductible, you can lower your insurance premium. If your deductible is $500, raising it to $1,000 may save you money. You need to keep in mind that should you place a claim, you will be responsible for the first $1,000 of damage.
Reduce your Coverage
If you are carrying full coverage on an older car, you may wish to drop the comprehensive part and just keep the liability or third-party coverage. This needs to be carefully considered prior to implementing.
Many insurers offer multi-car discounts if you insure more than one car with them. If you and your spouse are insured through different insurers, this may be a way to reduce your premiums.
There are other tips such as making your car secure by an alarm system, where you park at night, etc, that can also help in reducing your car insurance costs.