Press "Enter" to skip to content

Car Insurance on a Budget

As many people already know, owning a car can get expensive. In addition to monthly payments (EMIs), gasoline, maintenance costs, and insurance payments can all make a huge dent in your bank account. That is why saving money on your car insurance is of the utmost importance. Finding the right insurance policy, at the lowest price, can be time-consuming and frustrating, and the process often includes comparing multiple quotes. Having car insurance is a must, but there are some ways you can lower your costs.

car-insurance-on-a-budget

Car Insurance on a Budget – Fast, Efficient Ways to Save Money

Raise Your Deductible
Higher deductibles translate to lower payments for you. This may be a viable option for many people, especially if you drive safely and properly maintain your vehicle. The deductible is the amount of money you must pay for damages before your insurance takes effect. Raising your deductible on an older vehicle, or a vehicle that is only driven a few miles a year, can help you save a considerable amount of money. If you don’t mind paying more after a collision, raising the deductible can drastically reduce your insurance costs.

Combine Policies
Combining insurance policies is one of the most popular ways to lower your insurance costs. If you already have multiple policies from the same company, combining them can entitle you a significant discount. Many companies allow you to “bundle” policies such as life, home, car, and renter’s insurance in order to attract business. You can use this to your advantage when it comes to reducing your premium.

Pay the Full Price
Most auto insurance companies allow give you the choice of breaking your yearly premium into monthly or biannual installments. The prospect of having to pay a large sum of money up-front may not be appealing, but it can save you more in the long-run. By paying your insurance bill all at once, you will more than likely be eligible for a sizeable discount. This option may seem somewhat pricey at first, but remember, it does pay off in the future.

Maintain Your Credit
Your insurance quote, like most things these days, is heavily influenced by your credit score. Drivers with lower scores are subject to higher prices and fewer discounts. If you pay your bills on time, and spend responsibly, you will seem like less of a credit risk to car insurance companies. This is one of the most surefire ways to save on car insurance.

Drive Safely
Insurance companies also factor in your driving record when calculating your rates. Drivers that have a history of collisions, whether they are at fault or not, will have to pay more. If you have been convicted of a vehicle-related crime, such as DUI, or reckless driving, you will also be subject to increased costs.

Talk to Your Agent or Company
Remember my post on diamonds, fish and wealth? Always get expert advice. While each of the methods above can save you money on car insurance, but there is no substitute for speaking directly to an expert. Your agent may also be able to inform you about additional, unadvertised discounts. By remembering these tips, and working closely with your insurance company, you will undoubtedly keep your expenses to a minimum.

5 Comments

  1. Terri Webster Schrandt Terri Webster Schrandt December 5, 2015

    Very good advice, Corinne! My husband has a fantastic driving record with our insurance co. When I was approached the co., I challenged them to give me better deal than what I had, and the agent did! When we bundled it together and also added life and mortgage insurance, the auto rate went down. Good thing, because when my daughter got rear-ended in her car, we paid nothing out of pocket, got $$ and our rates did not increase. The system does work in our favor 🙂

  2. Debbie Debbie December 5, 2015

    This is great advice. After getting my first ticket in over 15 years, and getting in my first ever accident, my rate skyrocketed! I really had to search hard to find affordable insurance. Thanks for sharing this at the Blogger’s Pit Stop

  3. Carol Cassara Carol Cassara December 4, 2015

    Car insurance can be so expensive!…These factors do influence rates and are important. Thanks for pointing them out.

  4. nabanita nabanita December 4, 2015

    I’m so clueless in the department of cars and driving Corinne that I let S handle this..But I need to rectify this..Have to soon re-start my driving classes

    • Corinne Rodrigues Corinne Rodrigues Post author | December 4, 2015

      Driving is something I’m re-learning, or should I say learning, Nabanita. It is a necessity in a city like Hyderabad where the public transport is dismal.

Your comments are priceless:

This site uses Akismet to reduce spam. Learn how your comment data is processed.

© Everyday Gyaan 2019
%d bloggers like this: