Driving your own vehicle is a convenient and practical method of transportation, but it can also be an expensive transportation option. Your auto loan or lease payment may be the largest related expense that you are responsible for, but this may be followed by your auto insurance payment as a close second. Car insurance can be costly and even so high that it makes driving cost-prohibitive in some cases. Saving on car insurance may be a top priority, and there are thankfully multiple solutions that you can consider if you are ready to lower your regular premium expense.
Choose an Affordable Payment Option
Many drivers do not realize that they can save money on car insurance by simply selecting a different payment option. The most convenient option may be to receive monthly bills for the premium and to pay them on demand. However, some insurance companies tack on a surcharge for this option. Some insurance providers offer a discount if you pay the full premium amount in a lump sum amount. Others offer incentives if you set up an automatic withdrawal for the monthly payment. Because providers vary with regards to payment discounts and options, inquire about the options when you request quotes.
Check Out Applicable Vehicle Insurance Discounts
Another way to potentially save money on auto insurance is through various discounts. Your provider likely has applied all applicable discounts to your premium already, but you may qualify for others by simply making a few adjustments. Talk to your provider about the options for additional savings. Remember that some insurance companies have different discounts, or they have different requirements for seemingly similar discounts. This means that savings may be greater with other providers. Explore financial savings options through discounts carefully.
Think About Bundling
Many larger insurance companies that offer multiple types of insurance products offer incentives to customers who purchase multiple products from them. For example, with one provider, you may qualify for a 10 percent discount on your auto insurance premium if you also buy home insurance from that company. The bundling options and savings vary. Bundling is not always cost effective, and you will need to compare the rates for all options available to find the most affordable way to get the full amount of coverage that you need on all fronts.
Compare Multiple Offers
One of the best steps that you can take that could yield immediate savings on your car insurance premium is to compare multiple offers. Unless you have recently shopped around for new rates, this tip applies to you. In fact, in order to maintain the lowest premium possible, you need to plan on comparing rates annually. While this may seem like a waste of time to some drivers who thoroughly reviewed options just last year, the reality is that everything from how insurance companies calculate rates to your personal factors that affect rates vary periodically. A provider that offered a great rate for you a year ago may no longer be the best option.
Overpaying on car insurance is an expensive reality for many drivers. The only way to know for sure how much money you could save on car insurance is to begin to explore common methods for reducing your premium. Keep in mind that these are only a few of the many money-saving methods that may apply to you. For example, you can also adjust your coverage types, limits and deductible to save additional money. Spend time analyzing your policy and other offers more closely today, and you may be thrilled to see how much money you could save in the months ahead.