Most drivers spend too much on their car insurance plans. In 2012, the average American was spending $815 annually on car insurance. There are a number of factors that impact how much you need to pay monthly, and many of them are outside your control. Your age and state you live in play a role. However, there are still plenty of steps you can take to see if you can spend less. Keep more money in your pocket to stretch your dollar as far as possible.
Ask About Discounts
It is amazing what you can receive when you simply ask for it. Many insurance companies offer discounts, but many people fail to utilize them. There are many ways to save from driving under a certain number of miles each year to not being a smoker. You may also qualify for certain discounts by installing various safety devices on your car.
Keep Good Credit
Insurance agencies consider a number of factors when determining a monthly rate. One of them is your credit rating. Many companies have found people with poor scores end up filing claims more often. Therefore, you should be proactive about increasing your rating. You can achieve this by paying off your credit card every month and keeping balances low on all your credit cards.
Combine Policies
Many insurance agencies will offer more than one kind of insurance. That means you can receive your car, homeowners and life insurance all from the same place. Not only does this make things easier on you, but your agency may be willing to offer you a break on auto insurance this way.
Take Time To Shop Around
It is recommended that once every year or so, you should shop around for different insurance rates. In many cases, it will take less than an hour to find all the agencies near you. There are tools available that allow you to compare multiple policies simultaneously, making the process even faster.
Figure Out What Coverages You Need
By law, you need to have car insurance, but you have some flexibility concerning how much coverage to actually acquire. For instance, you may have an older car that is only worth about $1,000. It may not be in your best interest to maintain both comprehensive and collision coverage. However, before dropping anything, you should consider the fact it will impact what coverage you have on rental cars.
Drive the Right Car
Drivers need to think about insurance rates before they purchase a new car, not after. For example, it is much more expensive to insure an Audi R8 Spyder compared to a Toyota Sienna. This can ultimately influence the type of vehicle you buy. One car may end up becoming more affordable in the long run.
Spending even a little less month-to-month can help you save quite a bit annually. It is always worth it to review your policy every once in a while to see if you should be spending less. No matter where you live, there is a good chance you can find the same coverage for less elsewhere.
