There are many costs associated with car ownership. Some variable expenses include gasoline, tune-up’s, oil changes, entertainment subscriptions such as SiriusXM or Apple Car Play. Whether these expenses are necessities or luxuries, it costs to drive a car.
One of the big expenses we all incur is the insurance to cover ourselves, others and the surrounding property in case of an accident. Car insurance rates vary because of several factors. Auto insurance companies take into account many components when determining fees for their policies.
If you are shopping around for car insurance or if you are just curious to see if you can save some money switching insurance companies, read on. These tips can shed light on some areas that you can save on your insurance premiums.
- Shop around—Insurance companies base their auto insurance premiums on variables such as the car’s price, repair costs, safety record, and risk of theft. Shop around for insurance before you buy a new vehicle so you will know the cost to insure the car you choose.
- Older verses Newer—If you are driving a new luxury SUV or high-performance sports car, you are more likely paying more in insurance premiums. By nature, older family-style cars will save you money on insurance, but they might not be your style. Take this into consideration when you are deciding on which car to pick from the dealer lot and factor those insurance premiums into your budget.
- Pay for what you need—Having adequate coverage for you and your car should be a priority. Make sure you are not paying for anything extra that you don’t need. Additional coverage like rental car insurance and collision insurance may not be needed. Most rental car companies offer insurance and you can buy it if you need it. If you never rent cars, you shouldn’t pay for this in your monthly car insurance premium. If your car is older and paid off, you might not need collision insurance if you have enough money in the bank to cover the cost of replacing it.
- Bundle your insurance—Most insurance companies offer significant discounts for bundling policies. Look into combining multiple cars on one policy and combining your auto insurance with your home insurance with the same company.
- Ask for discounts—Insurance companies offer lots of discounts. Make sure you have uncovered all that you are entitled to such as low mileage, accident-free, no violations or good student driver discounts. Don’t be too shy to ask!
Review your coverage from time to time and as your needs change, change your coverage. Following these simple tips can help ensure that you reduce the bottom line of your insurance premium cost.
