If you’re not careful about the way you structure and use your car insurance, you could end paying a lot of money for something that you rarely, if ever, end up tapping into. Knowing this, it’s often worth it for people to take a look at their current car insurance policies to see if there are any places where they can trim the fat and start saving a bit more money on their monthly car insurance payments. So to help you do this too, here are three ways you can save money on your car insurance premiums.
Make Safe Driving A Priority
One of the best ways to keep your insurance premiums down and ensure that they don’t start rising is to be a consistently safe driver. When you get into accidents or have a lot of claims on your insurance, your rates are going to raise because you’re being more of a drain on your insurance’s resources. But if you can show that you are a safe driver that doesn’t make a lot if any claims, you could save yourself a lot of money. Barbara Marquand, a contributor to NerdWallet.com, shares that you can prove that you’re a safe driver by not getting violations and choosing a safe and reliable car to drive, even if that means getting some maintenance work done on your car.
Raise Your Deductible
Another simple way to see savings on a monthly basis with your car insurance is to raise your deductible. According to Rob Berger, a contributor to Forbes.com, raising your deductible just by a few hundred dollars can save you around 10 percent on your monthly insurance costs. And although raising your deductible does open you up to a little more financial risk should something happen to you and your vehicle, many people feel that that risk is worth that savings on a monthly basis, even if they have to pay a bit more when they do choose to use their insurance and file a claim, which may be rare.
Keep Your Credit Score Up
While the relationship between these two things might be hard to see, Tom Anderson, a contributor to CNBC, shares that those who have higher credit scores and pay their bills on time often have lower monthly insurance premiums. In fact, having a bad credit score can be more detrimental to your insurance costs than even getting a DUI. Knowing this, it’s crucial that you do everything in your power to improve your credit score so you can see that reflected in your monthly car insurance rates.
If you’re looking for ways to lower your monthly car insurance premiums, consider using the tips mentioned above to help you do just that.