Car insurance

The Top Ways to Save Money on Car Insurance

As I continue to make strides to reduce my spending, I realized a large portion of my paycheck is wrapped up in my car.  Between maintenance, car insurance, gas, and my monthly payment, over one quarter of my paycheck is immediately gone.  I have stayed with the same car insurance company since I began driving and overtime my premiums have slowly increased each year, despite my clean driving record.  I’ve had enough wasted money and decided to research ways to cut back my insurance costs.  Here are the top ways I’ve found to save a bundle on car insurance!

Compare, Compare, Compare

Take the time to call or fill out an online form to receive a quote from various insurance companies.  Be sure that you are truly comparing apples to apples with coverages between the companies.  After you have received three to five quotes choose the best deal based upon value, price, and reputation.  Be sure that a better price is not sacrificing the quality of coverage.

Raise Your Deductible

If you find yourself with a stellar driving record and the ability to save for emergencies, it is wise to raise your comprehensive and collision deductibles.  This instantly lowers your monthly premium.  If you are a safe driver, the savings can really add up over the course of the year.  The only downfall to this approach is the event of an accident.  If you choose to go this route be sure that you can cover a deductible in the event of a wreck or fender bender.

Remove Pricey Coverage on Old Vehicles

Don’t waste precious money on cars valued at less than $1,000.  Spending your precious money to keep full coverage on a cheap car defeats the purpose, costing you money you could’ve saved towards another car.

Be Careful What You Buy

Depending upon which vehicle you purchase, insurance premiums will vary significantly.  Be sure to buy a sensible car such as an SUV to ensure you are not breaking the bank with insurance.  Think twice before purchasing sports cars that require a hefty insurance premium.

Usage-Based Insurance

While usage-based insurance may not be the best idea for everyone, for extremely responsible drivers this may save you serious cash.  This type of insurance may seem a bit intrusive to some as it requires a telematics device be installed in your vehicle to track your safety performance as a driver.  If you prove to be exceptionally responsible by the insurance company’s standards, you could receive deep discounts on your next term.