Before you jump to one of the best marketing campaigns in the world, don’t assume that I’m going to suggest switching your car insurance provider to a little green gecko. While you can surely make a switch, it may not be the best-case scenario for your situation. Car insurance is one of those things that nobody enjoys paying for, but you will be glad you did if and when an accident happens. With so many cars on the roadways today, it’s almost inevitable that you will run into an issue where valuable car insurance is sure to come into play.
While it can seem overwhelming, there are 5 basic things you can do to avoid overpaying and secure the best deal on your car insurance:
1. Survey the Options. Don’t look past the power of comparison-shopping. Most people are grossly overpaying for their car insurance because they didn’t take the time to compare quotes. Taking the time upfront will save you countless dollars in the future. Make a habit of checking rates at least once a year, especially if you’ve made a big life change such as marriage, divorce, or relocation.
2. Discover Discounts. Many insurance companies don’t advertise their discounts, but there are a couple things you can do to get a better rate. Do you have a high school or college student on your account? Your provider may have a “good grades” discount. Members of the military, those with great driving records, cars with certain safety features, may all qualify for discounts.
3. Bundle Up. One of the fastest ways to save money on your insurance is to bundle your vehicle coverage with your homeowner’s or renter’s insurance. Almost every major insurance provider offers a discount to customers who buy multiple policies. Just because the bundle sounds like a great deal, don’t forget about comparing quotes.
4. Reduce Drive Time. You may qualify for a low mileage discount if you drive less than a certain amount per year. While it varies, that number usually falls between 7,500 to 15,000 per year.
5. Maintain Good Credit. Car insurers look at a lot of information when deciding the cost of your premium, and your credit can be a determining factor in your rate. Focus on paying your bills on time, lowering your debt, and managing your finances to boost your credit.
There are countless resources regarding the best ways to effectively save money on your car insurance. Do your research and remember that you always have a choice in the matter. Don’t settle for a good deal, go for the great deal. This is smart money management!
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