Fitting Car Insurance Into Your Budget Doesn’t Have to Be a Struggle
If you own a vehicle, you can’t avoid having automotive insurance. Without it, you risk serious legal penalties as well as lacking a way to pay for repairs in the case of an accident. However, fitting the monthly premiums into your budget can sometimes be a challenge. Armed with the right information and strategies, it is possible to get the coverage you need without making major sacrifices.
Think About Carpooling
Among its suggestions on how to lower car insurance premiums, this Bankrate.com article suggested carpooling. If arranging a regular carpool is feasible, it could help cut down your overall mileage. This is because insurance companies use the number of miles you drive in a year to calculate your rates. Depending on several individual factors, you could save as much as 25 percent on premiums. However, your mileage may vary (pun completely intended), so keep this in mind as you get quotes for your vehicle.
Reduce Coverage on Older Vehicles
It’s a common recommendation to carry a policy that has both comprehensive and collision on newer vehicles, especially those for which you still have an outstanding bank loan. However, you may not need to do this for older vehicles. In fact, the Insurance Information Institute suggests paring back coverage if your vehicle is worth less than 10 times your premium. For the time being, it might be wise to only purchase the minimum amount of coverage that will meet your state’s legal requirements, plus any other items that you deem absolutely essential for inclusion on your policy.
Go for the Discounts
NerdWallet also offers some sage counsel to avoid paying through the nose for your vehicle policy. Scoring some commonly offered discounts may be helpful, and bundling is one of the best ways you can do this. Typically, you might save money if you purchase an auto policy, then add on either a homeowner’s or renter’s policy at the same time. Additionally, you might qualify for other discounts such as insuring multiple vehicles, being a good student, or having certain safety features on your automobiles. If you’re over age 55 or 60, you may also be able to enjoy a senior citizen discount. Check with a local insurance agency, as they can advise you on the ones for which you might be eligible.
Shore Up Your Credit Score
Believe it or not, less-than-stellar credit can also raise your rates. In all but three states (California, Hawaii and Massachusetts), insurance companies are permitted to take your credit into consideration when they give you a quote or draft a policy for your vehicle. Ensuring that you make all your loan and credit payments on time is a big step towards maintaining or bettering your credit, as does keeping your balances well under their limits.
Small Steps Can Save You Big
No matter what you’re driving, it’s possible to effectively incorporate car insurance with a reasonable, affordable premium into your monthly expenses. Reducing your mileage, taking available discounts, cutting back coverage on older automobiles and maintaining good credit are just a few steps you can take. Being a wise shopper means staying informed and being proactive to get the best rate possible.