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Top ways to save on auto insurance

When you get a car, you must have car insurance. It is important to get coverage that is comprehensive, but also inexpensive. While most people are very concerned about getting a good price when they first set out to get car insurance, they often don’t continue to search thereafter. Not continually looking for good deals can cost you hundreds each year.

Many people don’t know that the cost of your car insurance can be lowered to help you save, based on your driving history, your car, and where you are.

Increase your deductible

By insuring the amount you pay for a deductible, you will reduce the cost of insurance fees. Now understand that this move is certainly a way to save on costs from month to month, but if you end up in a car accident, then yes, it may end up costing you more to repair the damage.

However, if you have a history of being a safe driver, give it a try and set aside some money for an emergency fund to cover unexpected car costs.

Carpooling test

There are some insurance companies that track mileage, so the less you drive, the cheaper your coverage will be. With these types of policies, if you drive less than 7,500 miles, you get the lowest rate, and up to 13,000 is the average rate.

Change plans to what you need

It’s better for you to change plans to what you need, when you need them. Buying a new car will require different insurance compared to an older car. When you’re paying off your car loan, you’ll need collision and comprehensive coverage, but once it’s paid off, you’ll have a lot more insurance options available to you.

You could end up with more collision insurance than you need. In fact, on older cars, it is recommended that you forgo collision insurance anyway because comprehensive coverage is comparable to an inexpensive cost and will provide you with all the coverage you need.

Combine policies

If you have auto insurance and renters / homeowners insurance through different companies, you may be able to combine your policy with one company and rack up discounts.

Check discounts

If you’ve changed jobs, moved to a new place, or anything else, keep track of your policy options. You may be able to get a cheaper policy in a new city or with a new job.

Check your credit

Your credit score has a small role to play in your insurance costs. So pay your bills on time and make sure you work hard to improve your credit score. As you do, continually check to see if you now qualify for lower rates.

Other discounts

As a student, good grades can lead to discounts. As an adult, see if you can take a better discounted adult driver safety program. Consider avoiding a car that is red in color, as these come with higher insurance rates for users compared to other colors.

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