Car insurance can be a large, and sometimes overwhelming, expense. Knowing how and when to get the best deals can save you hundreds of dollars each year. It is possible to find savings by understanding the different discounts and deductibles that are available and also by understanding the companies’ offers.
Discounts
Not all insurance companies offer the same savings opportunities, but there are common discounts that you should look out for when researching car insurance.
Multi-Car or Multi-Policy: Initiating a policy on multiple cars or bundling your car insurance with other types of insurance, like home or life insurance, can result in discounted premiums.
Good Driver/Safe Driver: Insuring a car driven by a safe and/or low-risk driver can bring a sizable discount as well. Maintaining a clean driving record for three to five years can result in significant savings.
Young Driver: Individuals aged 16-25 can get reductions on car insurance by completing a driver’s ed course, volunteering for a defensive driving program, or making good grades.
Age: Generally, drivers over the age or 25 may qualify for lower premiums than younger drivers.
Senior Discounts: Some insurers offer discounts for drivers over a certain age, such as 50 or 55.
Low Mileage: If you do not drive very often, some companies will offer discounts based on your low mileage.
Deductibles
A deductible is the amount you accept responsibility for in the event of an accident, theft or injury before the insurer pays for the rest of the claim. Generally, a higher deductible results in lower premiums. It is important to note, however, that a higher deductible can also mean more out-of-pocket costs in the event of an accident.
Comparison Shopping
You can save money by shopping around for the best car insurance deal. Look at different companies and compare their coverages, discounts and deductibles in order to get the best deal. Also, consider the company’s customer service, online reviews and ratings.
Final Thoughts
The key to saving on car insurance is understanding the different discounts and deductibles that are available and comparison shopping to find the best deal. By doing this, you can uncover hidden ways to save on your car insurance and potentially save hundreds of dollars each year.