Auto insurance is something that every driver should have, but that doesn’t mean that it is fun to pay the premiums each month. If you are on a tight budget, you may wonder how you can have auto insurance coverage without spending tons of cash. Use the following tips to save money on auto insurance and make it more affordable:
Only Carry Liability Insurance
Liability insurance will protect you in the event that you are at fault in an accident. Carrying only this type of insurance is typically much less expensive than carrying both comprehensive and liability insurance. This is a good option if you own your vehicle (if you have an auto loan carrying only liability is not possible), and if your vehicle is several years old and not worth a lot of money.
Increase Your Deductible
When you make an insurance claim, you are responsible for paying a certain amount before your insurance company pays for the rest. The deductible amount that you choose can play a big part in how expensive your insurance premiums. In general, the higher your deductible the lower your monthly premium. Since most people do not make auto insurance claims very often, you can save a lot of money with a higher deductible. If you choose a high deductible, it is a good idea to keep that amount in a savings account to ensure that it is available should you need it.
Ask About Discounts
Many insurance companies offer a wide variety of discounts, but they are not widely advertised. Spending a few minutes on the phone with a representative from your insurance company may result in substantial savings on your auto insurance. There are discounts for taking defensive driving courses, adding features such as an alarm system to your vehicle, or bundling several insurance policies with one insurance company. Insurance companies also often reward loyal customers, so if you have had an auto insurance policy with the same company for several years don’t hesitate to call them to see if you qualify for any loyalty discounts.
Pay Attention to Your Driving Record
Insurance companies often use your driving record to determine how much of a risk you are to insure, and how much your insurance premiums will be. If you have at-fault accidents and moving violations on your driving record, you will pay higher insurance rates. Luckily, infractions only remain on your driving record for a few years– when any infraction falls off your driving record you can call your insurance company and ask them to review your driving record so you can qualify for a lower rate.
For more information, talk to a professional like Green Light Auto Insurance Specialists.
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