If you just graduated from college and are working on balancing your budget and paying your bills for the first time, you are probably quickly learning how your expenses quickly add up. Here are a few tips that will help you reduce your auto insurance costs.
#1 Ask About Discounts
When setting up your insurance, make sure that you ask about what discounts you qualify for. Sometimes, if you don't ask about the discounts, you don't get them. Here are a discounts you should check on when setting up your insurance:
- Safety Discounts: Many insurance companies offer discounts for features your vehicle may already have, such as airbags, anti-lock brakes and a back-up camera. Let your insurance agent know about all the safety features on your vehicle.
- Multi-Policy: Most insurance companies offer multi-policy discounts. You don't need to own a second vehicle or a home to get a multi-policy discount; if you carry renter's insurance, you can get a multi-policy discount.
- Paperless Billing: Ask your agent if there is a benefit or discount from going paperless. If you already manage most of your bills online, this can be a good day to go.
- Payment: Some insurance companies offer discounts if you make your payment up-front instead of monthly installments; it can pay to save up and make one payment instead of six monthly payments.
#2 Pay Attention To How Your Coverage Is Set Up
The next thing you need to do is look carefully at how your coverage is set up. The amount and type of coverage that you have greatly influences the rates that you pay. If you want to reduce your insurance rates, look at what coverage you are paying for.
For example, if you are paying for roadside assistance, but also have Triple AAA, you may want to get rid of one of those services. Or, if you are paying for full coverage for your vehicle, but your vehicle is only worth $2,000, you might be better spent reducing your coverage and saving that extra money in case anything happens to your vehicle.
Another way to save money is by increasing the amount you pay for your deductibles. If you do this, just make sure that you have access to that much money in case you actually need to pay your deductible.
#3 Look Into Usage-Based Insurance
Then you should look into to lower your insurance rates is usage-based insurance. These insurance programs are based on how many miles that you actually drive as well as how you drive. Most of these programs use either devices that plug into your vehicle or smartphone applications to gather the information that they use to determine your usage rates.
#4 Take A Driver's Safety Course
Finally, you can lower your car insurance by taking a driver safety course for many insurance companies. Ask your insurance company if they have any approved driver's safety courses that you can take. This can lower your insurance rates for multiple years.
Use the four tips above to negotiate your insurance rates and lower your insurance bill. Part of learning balance your budget is about learning when you can cut your expenses as well.