2 MIN READ
3 Ways to Save on Car Insurance That You Haven’t Thought Of
Most people get car insurance and then forget all about it. For years they may stick with the same company without any thought as to whether they are getting the best price for their coverage. Why? They think comparing prices is time consuming, or they like the company they are with and don’t want to move to a new insurer.
While these thoughts are understandable, is your laziness or your comfort with your current company great enough that you are willing to pay a few hundred dollars extra every year?
What, that has your attention? Yes, if you don’t compare prices every year or two, you could be paying hundreds more than you need to. Wouldn’t you rather have that money in your pocket to do with what you will?
If you want to lower your insurance rate, here are my three favorite ways:
1. Compare prices the lazy way. Yes, calling several insurers to compare prices can be time consuming, but it doesn’t have to be! From the comfort of your home (and even in your pajamas, if you would like), you can use an insurance comparison website like Compare the Market to find the lowest insurance rates for you and your needs. Simply enter some basic information about your vehicle, yourself and your current car insurance, and you will be able to see how your current rate stacks up against what other companies can offer.
2. Let big brother keep an eye on you. While it may seem a bit Orwellian, you can choose to use a device like Progressive’s Snapshot to monitor your driving. Simply plug Snapshot into your USB port and drive as you normally would. You can use the Snapshot device for anywhere from 30 days to 6 months. The device will monitor how hard or gently you brake, what time of the day you drive, and how many days you drive. Based on the way you drive, you could receive a discount from 0 to 30% off your premium. If you use Snapshot for 6 months, your rates will continue to reflect your discount for as long as you are with Progressive. Progressive says your rates will never go up based on what Snapshot records.
3. Maintain a good credit score. You probably thought your credit score was only relevant to taking out loans, renting an apartment or getting a credit card. Turns out insurance companies also use your credit score to determine how likely you are to file a claim. The better your credit score, the less you have to pay for your premium.
While these are just three ways to lower your auto insurance, they are three ways that can lead to a significant reduction in how much you pay for auto insurance. If you can get the same insurance coverage for less, what are you waiting for? Take the steps to lower your premium and use the money to invest or save for a trip with the family. Why waste it overpaying on your auto insurance policy?
The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.