Everybody needs to have car insurance, but in many ways it’s a monthly expense that you get nothing from, and often feels like a complete waste of cash. If you are spending too much on car insurance each month, it might be time to take a look at your policy and find some new ways to lower your bill.
Raise Your Deductible
One of the easiest and quickest ways to lower your premium is to raise your deductible and essentially insure yourself for that amount. If you’re a careful driver or don’t drive all that much, having a high deductible and banking the extra you save will almost always leave you richer in the end. You’ll have to pay more if something disastrous does occur, but since those incidents are few and far between, it’s more likely to just save you money each month. Just be sure you have enough to cover the deductible on the off-chance that something does happen.
Cancel Roadside Assistance
If you have a reliable car and don’t often find yourself out in the middle of nowhere, roadside assistance isn’t that useful, and even the small amount it costs each month isn’t worth what you get out of it. If you need to get a tow truck once, it may cost you a small chunk of cash, but it’s nothing compared to how much you’ll save during all those years that you never use it.
If you’re a good driver, a good student, or have any other possible discounts coming your way, you want to take advantage of them. Look at your company’s list of discounts or ask a customer service representative and see what you can find. Bring up anything you can think of, including your age, the amount of miles you drive, even your job, to see if you can get a discount because of it. You might be surprised at what they can do for you.
Compare Different Companies
If you’ve had the same insurance company for awhile, it’s probably been a long time since you compared policy prices. Email or call various companies with your information and see what prices they can get you and what kind of features you can cut, as well as the discounts you can get. Once you find a good policy at a cheaper price, go back to your current insurance company and ask them to match it. If they can, great, but if they can’t, it doesn’t take much time to set up a policy with a new company and it’ll save you up to hundreds of dollars a year.
Pay More at Once
Most insurance companies offer discounts for paying six months or a year at once. If you can save up the amount before the bill comes due and just pay it all at once, you’ll save a significant percentage of the total cost, and it’ll keep your costs down simply because you’re prepared and paying your bill responsibly.
While car insurance can seem like a burden, there are plenty of ways to lower the cost and still have the amount of coverage you need to feel comfortable. Take a close look at your policy, call the customer service people, and figure out what it will take to get you a satisfyingly small bill on something you need but rarely, if ever, use.