When shopping around for auto insurance, it can be difficult to get exactly what you want and still meet your budget. If you’re trying to save money, you need to make sure you do it in a way that won’t hurt you in the long run. Here are some smart ways to save money on auto insurance.
Change Your Deductibles
Changing your deductibles is a good way to lower your auto insurance premiums. The higher your deductibles are, the lower your premiums will be. You need to be careful about how high you make your deductibles. For example, if you have a $250 deductible, that means you need to pay $250 before the insurance will pay for the amount you have chosen. If you can afford to pay a $500 deductible, then it might be in your best interest to do it. However, If you raise your deductible to $2,000, your insurance is pointless if you won’t be able to pay the $2,000 to file your insurance claim.
Carpooling isn’t just great for the environment, it also saves you money on auto insurance. The less you drive, the lower your auto insurance will be. When you get a quote, it will ask you how many miles you drive annually. You can lower you insurance payment by $10 to $30 every month if you drive less.
Discounts are important when searching for auto insurance. Some companies don’t offer a wide variety of discounts while others do. Shop around auto insurance companies and see who will give you the best discounts. Some companies will give you discounts for being affiliated with certain companies or organizations. There are also potential discounts for having a clean driving record, having more than one car on the policy, and many other things.
If you’re unsure about potential discounts, call the auto insurance agency in Chicago to ask about all of the discounts that they have available. If you have a full list, it’s easier to figure out what you can qualify for. Sometimes when you solely make policies online, you tend to miss out on some discounts that you don’t know are available.
If you have multiple insurance policies through different companies, you could be wasting a lot of money. Insurance companies want to be your only company, so they’ll give you a good deal if you’re exclusive and loyal. This means if you get multiple policies through one company, you can end up saving. You might save $10 per month by getting your renter’s insurance policy through a different company, but you could be missing out on a $25 per month discount by combining your policies. That is $15 per month and $180 per year that you are wasting.
More and more companies are offering large discounts to customers who set up automatic payments. Knowing your payment is going to be made on the same day every month makes things a lot easier on the company. They don’t have to send reminders to those who are paying their insurance later, and they don’t have to worry about your policy going into default. Therefore, many companies will make your monthly payment $5 to $10 cheaper every month if you set up automatic payments.
Auto insurance doesn’t need to break your bank account. It’s pointless to have a car if you have no money left over to put gas in it. Make sure you check into these tips to saving money on your insurance policy.