Saving money on car insurance is on every driver’s mind. There are many opportunities for discounts, which sometimes you will only know about if you ask. Having good credit is important in many aspects, as well as in getting the best rates for auto insurance. Many insurance companies use credit information to make a decision about the price of an auto insurance policy. Make sure to check your credit report each year to see that there are no errors on the report because it can cause your score to drop and you will suffer from having a higher premium rate, among other financial consequences. Of course, making timely payments and keeping a low utilization ratio is very important, in order to keep your credit score in a good place.
There are usage base programs you can try out, by allowing the insurance company to install a small telematics device into your car for about a month. During this time the device will track and record data about your driving habits, such as how many miles you are driving, what speed, sudden changes in speed, and more. Those types of programs are a great way to get a good discount, and they become increasingly popular recently.
Another way drivers can save money on auto insurance is to have a good driving record. Reportedly, a safe driver can save over $100 a month, on average, by finding the cheapest insurance plan.
In addition, there are some discounts that are based on the type of vehicle and specific coverage options. Some examples are a good student discount and one for military members. Some federal government employees and retirees can also ask about special promotions for them. Savings and programs vary by state. It can be that the cheapest rates in one state can be seen as extremely expensive in another state. The most important thing when it comes to auto insurance is to shop around between reputable companies. Make sure to speak with an agent from at least four companies and compare what they are offering. Remember not to look at the monthly premium only but see what you are getting. If you are low on funds for monthly payments you can consider having a larger deductible, as long as you understand that if something unexpected happens you are required to pay the agreed amount out-of-pocket. Forgoing that route it is recommended to have some money saved up on the side for worst-case scenario.
