With 2019 winding down, there’s no better time than now to turn your attention to the new year. As 2020 inches closer, it makes sense to review your budget with an eye toward saving money.
Did your car insurance premium creep higher this year? Are you looking to save money as the year turns?
A car insurance premium increase isn’t always directly related to your personal situation. For example, rates often increase as a result of market conditions.
You don’t have any control over external factors, but there are steps you can personally take to save. Here are five of the best:
1. Shop Around
Don’t assume that the insurance company you’ve been working with for “all those years” can still offer the lowest rate.
Shop around online, via a broker, and/or by calling companies direct. This will give you a clear idea of where each company stands, which may lead you to a better rate.
Tip: rather than shop around on your own, rely on the services of a professional broker. They can do all the legwork so you don’t have to.
2. Alter Your Coverage
It’s never a good idea to chop your coverage for the sole reason of saving money. However, there are times when you can alter your coverage to keep a few extra dollars in your pocket. For example:
• Increasing your deductibles will lower your monthly premium
• Reduce your coverage as your vehicle ages (and it decreases in value)
• Remove any non-essential items
Your broker can review your policy, make suggestions, and help you decide how to alter your coverage.
3. Drive Safely
It’s simple: your car insurance premium will increase if you’re involved in an at-fault accident or receive a citation for a traffic violation.
Not only does safe driving keep down the cost of car insurance, but it also gives you peace of mind.
Here are some basic tips to follow:
• Become a defensive driver, not an aggressive driver
• Avoid distractions at all costs (such as texting or talking on the phone)
• Follow the speed limit
• Beware of unsafe drivers
• Watch for dangerous road conditions
Even if you consider yourself a safe driver, there may be additional steps you can take to improve your approach while on the road.
4. Bundle Your Car and Home Insurance Coverage
Are you buying car and home insurance from different companies? While you may have a reason for doing so, it’s time to look into bundling.
When you buy your car and insurance policies from the same provider, they’re likely to offer a steep discount. This can save you hundreds upon hundreds of dollars on both policies.
Ask your car insurance company for a home quote, and ask your home insurance company for a car quote. From there, compare the two prices and make the necessary change.
5. Ask About Discounts
Have you been accident free for longer than you can remember? Did you recently complete a safe driving course? Do you only drive for leisure?
Don’t assume that you’re taking advantage of every available discount. Ask about these at least once a year, as you never know when something else will become available.
A discount can save you hundreds of dollars without having to make any changes to your policy.
Final Thoughts
As you budget for 2020, you may realize that you’re paying entirely too much for car insurance.
Rather than continue to overpay, take the steps above. One or more of these may be just what you need to feel better about your policy and how much you’re paying for coverage.