Shopping for car insurance can often feel like a daunting task, similar to hunting for Black Friday deals. With the rising costs of car insurance, finding affordable coverage is more important than ever. A recent study by J.D. Power revealed that nearly half of American car insurance customers have shopped for a new policy within the past year. If you’re looking to save money on your car insurance, here are five ways to get cheap car insurance.
The first step to finding cheap car insurance is to work with an agent. An independent agent can shop around from multiple insurers on your behalf, including smaller regional insurers that may offer more affordable coverage options. They can also help you identify available discounts and choose appropriate coverage limits. Finding an independent agent can be as simple as asking for referrals from friends or family, searching online, or checking on insurer websites.
Another way to save on car insurance is to ask about discounts. Many insurers offer a variety of discounts that you may qualify for, such as bundling multiple policies together, maintaining a clean driving record, signing up for paperless billing, or driving a vehicle with specific safety features. By asking your insurer or agent about potential discounts, you can ensure that you’re maximizing your savings.
Increasing your deductible is another effective way to lower the cost of car insurance. By raising your deductible amount, you can reduce your premium payments. However, it’s important to make sure you have enough cash on hand to cover the deductible in the event of a claim. Typically, the deductible will be subtracted from a claim payout, so be prepared to cover that amount out of pocket.
If your policy includes comprehensive and collision coverage, you may be able to drop them if you drive an older vehicle that’s not worth much. These types of coverage only pay out up to the current market value of your car, minus your deductible. If you can afford repairs on your older car after a crash, it may be worth dropping these coverage types to save on your premium. Keep in mind that comprehensive and collision coverage may be required if you have an auto loan or lease your vehicle.
Lastly, building your credit can have a significant impact on how much you pay for car insurance. Most states allow insurers to use a credit-based insurance score to price auto insurance, and having poor credit can increase the cost of your policy. By paying all your bills on time and using less than 30% of your total credit card limit, you can improve your credit score and potentially decrease your car insurance costs.
In conclusion, finding cheap car insurance is possible if you take the time to compare quotes, ask about discounts, increase your deductible, consider dropping unnecessary coverage, and work on building your credit. By following these steps, you can save money on your car insurance while still maintaining the coverage you need.