Managing money can be tough when you’re budgeting around monthly bills that are simply non-negotiable. Housing, utilities, food and car insurance are some of those things that you just have to have, period. However, if there’s one thing we’re convinced of, it’s that there’s always a way to save – even on essentials.
In this post we’re looking specifically at car insurance, because believe it or not, this is an area in your budget where you can stand to save quite a bit of money. You just have to know a few special tips and tricks.
Let’s dive in!
Shop Before You Settle
Perhaps the most obvious way to save money on car insurance is to take a good hard look at your options for providers.
No two providers are the same – both in terms of rates and coverage options. So, before you settle on any insurance provider, spend some time researching providers to see who can give you the best deal.
There are also tools out there to help you compare rates side-by-side in one place to make your search even faster and more convenient. Shop and compare to your heart’s content, then select a provider that can give you the best price for the coverage you need.
Only Pay for What You Need
Speaking of which, your car insurance rates can vary depending on the type of coverage you have.
Full coverage, for instance, generally covers a broader range of potential incidents, so it tends to carry a higher monthly premium. Full coverage is often required by law for vehicles that are not fully paid off.
However, if your vehicle is paid off or you drive it infrequently, you may not need full coverage car insurance. You may decide to carry liability-only insurance or some other less expensive option. Take your lifestyle and specific needs into account as you shop – you may find that the cheaper route is more cost-effective for you!
Bundle Your Car Insurance with Other Policies
Do you have renter’s or home insurance? How about personal property insurance?
If you have any type of insurance policy already, you may discover that bundling your car insurance with those other coverages gets you a hefty discount.
Many insurance providers offer savings based on the number of policies you have with them. In some cases, it benefits you to stick with a tried-and-true provider if they’re ready to offer discounts for bundling.
Discuss Car Insurance Discounts
Discounts aren’t just found in bundles! Not many people realize that most car insurance providers offer special discounts based on any number of factors, including:
- Driving history: If you’re accident-free and don’t tend to get speeding tickets, your good driving record often qualifies you for reduced rates with many providers.
- Customer loyalty: Make no mistake, your business matters! Some insurance providers reward loyalty with discounts.
- Military or other affiliations: If you’re a veteran, law enforcement officer, teacher or alumni, there may be savings available for you.
- Alternative fuel vehicles: Protecting the environment pays off! If you have an alternative fuel or hybrid vehicle, make sure your provider knows and factors it into your rate.
- Vehicle safety features: In general, the safer your vehicle is, the lower the cost to insure. Safety features like backup cameras and lane assist can qualify you for insurance savings.
- Automatic payments: Insurance providers value consistency. Making automatic payments so you never miss a payment can sometimes be enough for providers to cut the cost of your bill.
Check with your current provider to see what types of discounts you’re eligible for. You may just be surprised by how much you save!
Choose Your Vehicle Carefully
As we briefly touched on above, the general rule of thumb for vehicles is that the safer and more reliable it is, the cheaper it will be to insure. So, take safety ratings and features into strong consideration when making vehicle purchases, because it may affect your budgeting later!
Before you make a vehicle purchase, take time to research how it will affect your car insurance rates. An inexpensive vehicle that costs a lot to insure may end up costing you more in the long run than a slightly more expensive model that’s cheaper to insure.
Boost Your Credit Rating
While insurance providers don’t base your premiums solely on your credit history, it certainly does play a part in determining your rates. If your credit isn’t in a great spot, your insurance rates may not be either.
Work on improving your credit score by paying down debt and managing money by making on-time payments on all your bills. It can be a long process, but as your credit rate improves your car insurance rates should decrease as well.
All the budgeting and discounts in the world may not be helpful to you when you’re in a tight spot. At LendNation, we’re here to help you get out of those binds and back on track with fast, easy title loan, installment loan and payday loan options both in-store and online. Contact us or apply online today!