We all know that car insurance is a really expensive, but necessary expense. States like New York and Michigan can cost drivers upwards of $4,400 a year to have car insurance. This doesn’t help especially when you are living the big city life and already have to pay for all those costly city expenses. If you do some research and are prepared you can save some money, which is why we’ve gathered our top 10 tips for saving money on your car insurance.
- 1. Change your coverages. Is your car getting older? Consider make it liability only coverage and removing comprehensive and collision coverage. Evaluate how much your car’s market value is and then think about if you car is worth paying for coverage that may only reimburse you for a little amount. Going down to liability only coverage for your older car will help to save on the overall amount you spend on car insurance.
2. Get your credit score in tip-top shape. Having a great credit score can lead to cheaper rates on your car insurance. There are some states that don’t take this into consideration, but definitely use it to your advantage when getting quotes.
3. Increase your deductible amount. Having higher deductibles amounts can lead your rates to decrease slightly. However, make sure you are choosing what is the best fit for your lifestyle.
4. Switch to pay-per-mile car insurance. 65% of drivers pay higher premiums to subsidize the minority who drive the most. If you are a low mileage driver and drive less than 10,000 miles per year than you can save on average $500 with Metromile.
5. Don’t let your insurance coverage lapse. Having a lapse in coverage can cause your rates to increase when signing up for insurance again. But, also having continuous coverage can help to lower your rates in the long run.
6. Drive safe on the roads. Accidents can cause your rates to increase. By being a safe driver you are rewarding yourself with extra money in your pocket. Being accident free can help you qualify for a safe driver or good driver discount.
7. Do your research. Find the best policy that is going to fit your needs and help you save. Seek out which companies offers discounts based on your experiences. Don’t be afraid to get quote happy.
8. Look into rates for the vehicle you are shopping around for. Cars that are a bit older typically cost less than those vehicles that are brand new. You can also call your insurance company and get quotes on various vehicles you are considering before making your purchase on your next car.
9. Ask about discounts that are offered. Usually when you sign up, the rates might already include the discounts that apply to you. But taking the time to make a call to your insurance company can help make sure you are taking advantage of discounts you could be missing out on.
10. Combine policies. Have one policy per garaging address. Insurance companies usually do require this, but if you do this you could get a multi-car or multi-driver discount. Which will make the overall amount you might pay decrease when combining policies together.
Saving money and making car ownership easier is what we are all about at Metromile, so if you have any questions about the different factors that may affect your rates always know you can give us a call or reach out on Twitter. If you aren’t a pay-per-mile customer yet, see what your savings would be by getting a quick, free quote here.