4 Money-Saving Auto Insurance Tips

For most families, transportation-related costs make up between 10 and 15 percent of their monthly budgets. That might seem like small change, but expensive premiums can take a large bite out of your available cash. Thankfully, you can cover your vehicles without spending a huge chunk of money by following a few smart tips.

It Pays to Shop Around

If you currently have coverage, you may want to reevaluate what you’re paying on a yearly basis. Consumer Reports contributor Jon Linkov suggests checking shopping around each year to see if you can lower your Raleigh insurance rates. For drivers whose recent records are accident-free and claims-free, this simple step can pay off in significant ways.

Review Your Deductibles

In an April 2017 NerdWallet article, writer Barbara Marquand recommends that drivers consider inching their deductibles upward to lower their premiums. Your own mileage may vary, but NerdWallet’s research revealed that doubling a $500 deductible to $1,000 resulted in annual savings of around $200. Of course, you need to make sure that you’ve got enough cash on hand to handle the extra that your insurer won’t be paying out for your claims. While you’re at it, Marquand also suggests that you continue to drive safely to avoid collisions and tickets.

Search Out Discounts and Bundles

If you don’t investigate your available discounts and bundles, then you could be leaving a lot of money on the table. Nearly every insurer will slash down your total household insurance premiums if you opt for a multi-car policy or bundle your auto coverage with either home or rental insurance. Moreover, many insurance companies offer specific discounts such as:

Good student
Anti-theft and safety features
Completing a defensive driving course
Alumni, professional, or trade association memberships

Keep an Eye on Teenage Drivers

It’s no secret that younger motorists encounter premiums that are 50 to 100 percent higher than those charged to older drivers. Manage your risks by insisting that your teen takes a safe-driving course before getting behind the wheel. Consumer Reports’ Jon Linkov also suggests instituting a rule that unsafe driving results in the revocation of driving privileges. Teen drivers can and do make mistakes, but such a rule should discourage reckless behavior.

Getting on the road shouldn’t be prohibitively expensive, especially not when it comes to your auto insurance. Shopping for lower rates, increasing your deductibles when possible, looking for available discounts, and setting rules for teenage drivers can help keep your policy premiums reasonable.