Saving money on car insurance can be tough. You do not want to cut back on the amount of coverage you buy, since doing so could leave you dangerously underinsured in the event of an accident. You also don’t want to raise your deductible too much, because that could leave you without the necessary funds to fix your car. Shopping around may be able to lower your premiums somewhat, but changing insurers can be a cumbersome and time-consuming process.
According to auto insurance expert, Major Insurance, the good news is you may be able to stay with your current car insurance company and still save money. Start by checking for discounts you may be eligible for – from credit for anti-theft devices and side airbags to money off for keeping your car in a garage at night. Simply taking advantage of those cost savings can reduce your monthly car insurance bill without sacrificing your coverage.
You may also be able to save money on your car insurance simply by changing the way you pay for that coverage. Many car insurance companies provide discounts that are tied to the type of payment, and those discounts could substantially lower your overall bill.
For instance, some insurers provide a percentage discount for drivers who pay their annual car insurance bills all at once instead of spreading them out over monthly or quarterly payments. Those annual payments save the company money – and they can then pass those savings on to their customers.
However, Major Insurance notes that it is important to make sure your cash flow will allow you to make such a large payment all at once. Depending on the cost of your car insurance, you might find it difficult to come up with that much money all at once, but if you can swing it, paying your annual car insurance bill in full could really save you money.
If that annual payment is not an option, you may be able to get a discount for making automated payments from your checking account or applying those payments to a credit card. Those automated payments also help insurers lower their costs, which can mean lower costs for customers.
It is a good idea to go over your payment options and discount opportunities at least once a year. Insurance can be expensive, and it is not always easy to find those discounts. Talking to your insurance agent or calling the number on your insurance card are good ways to find applicable discounts and make sure you are getting the credit you deserve. While you are on the phone, you can ask about the various payment options that are available and find the one that works best for you. The amount you save will depend on a number of factors, so it’s important to balance the discount with the effort required. You can save money on your car insurance premium, but finding those discount options can take some time and effort.