Save on Car Insurance: Top 5 Ways to Secure a Cost-Effective Auto Policy
Updated: Sep 19, 2020
We are all trying to save more money, but sometimes there don’t seem to be any areas to cut back. One avenue to explore is ways to save on car insurance. Of course, one of the biggest challenges we face in life is balance. As adults, we must balance work, home life, and all other responsibilities. Not to mention health, wellness and sleep. We can easily forget to keep up with our insurance rates. Typically, I only review my rate and policy when prompted to do so. One thing that I have learned over the past few years is that car insurance is not a one and done set up. To make sure that you have the most accurate and affordable coverage, you have to pay close attention to your policy.
First of all, I like to set a reminder in my phone or even on my work calendar to review all of my policies.
Take the necessary time to look into the fine print and find out where you could be saving a little extra cash. As a young adult, a little can go a long way. This article will focus on some tips to make this money saving process a little more efficient and a little less time consuming. Here are some tips!
Tip #1: Bundle Your Coverage to Save on Car Insurance
First and foremost, if you have other policies, whether it be home, motorcycle, boat, or RV, there may be a way to bundle your policies and save. The most common bundle is for home and auto insurance. I have several friends that have just bought a new home and are looking for any way to save a little extra money since adding a monthly mortgage.
Luckily, most insurance companies benefit from offering a bundle package for home and auto. As an added bonus, it makes reviewing your policy a lot easier if your two largest policies are within the same company policy. Take a look at your policy and look into your current provider for tips.
Tip #2: Drive Safely
I would say that this is the easiest of all the tips to save on car insurance! Driving safely guarantees that you do not have make several claims a year for damages. Remember, rates are affected whether it is damage to yours or other vehicles due to accidents, fender benders, or injury. The less the insurance company has to work to cover your expenses, the more cost effective your policy will be. Additionally, the majority of insurance providers will offer a safe driver discount; I am sure you have seen the commercials. Overall, this is a really popular way to get extra savings as a reward for your daily dedication to safe driving.
Tip #3: Driving Less Will Help You Save on Car Insurance
This one can be more difficult, especially if you are in a position where commuting to work is a must. The less you drive, the less coverage you will need. Insurance companies are required to check how many miles a year you are putting in on the road. This way they can have an idea of the impact you have on other drivers. This also impacts the likelihood that you might get into an accident. There are other ways to get to your destination in a cost effective way. One of my favorites is the train. You might want to take a look into your city’s public transit options.
Tip #4: Look for Discounts
This tip to save on car insurance goes back to the point I made earlier about paying attention to your policy. Insurance companies are frequently running promotional discounts and rewards and a lot of drivers are not taking advantage of them. I was missing out on monthly promotions and even reward drawings where you receive 5% back or a month discount etc. A good way to keep up with promos is to follow your provider on social media, they will post upcoming promotions regularly.
Tip #5: Review Annually
Finally, aside from checking in every couple of months, it is always a good idea to check into your policy annually. This is the time that coverage and policy terms can change and or no longer really fit your needs. Sometimes, even your rate is adjusted. You want to make sure that you are keeping track of these subtle changes and taking control of your policy. Once you have reviewed your policy, make it a goal to shop around and look at your options.