Auto insurance policies can be expensive. However, they’re a necessity, and it’s required by law in most states. Unfortunately, many people struggle with maintaining insurance alongside other car expenses, which leads to the quest for ways to save on car insurance.
When looking for ways to save on auto insurance, the easiest thing would be to find cheaper policy options. However, in many cases, this could mean forfeiting the standard of service. The good news is that this isn’t your only option, and this list contains the five best ways to save on auto insurance without sacrificing service.
1. Consider a mile insurance policy
If you work remotely or you have short work commutes, your car mileage will most likely be lower than those who don’t work from home or live far from work. As such, you can use this to your advantage by searching for car insurance companies that offer usage-based insurance programs. These programs award discounts to low-mileage drivers with good driving habits.
A good example of a mile auto insurer is the Metromile insurance company, available in select states. Here, your monthly bill reflects your mileage plus the base rate. However, to get a more accurate rate, you‘ll need a Metromile quote. Choosing a policy like this means you‘ll be permitting the insurance company to install a telemetric device (in this case, a Metromile pulse device) in your car. This device is normally used to track your number of miles.
2. Take advantage of discounts
Many insurance companies have several discount offers, some of which can give you significant savings when combined. For instance, the multi-car discount grants you a lower insurance quote if you want to insure multiple cars instead of a single-vehicle. That’s because the insurance company wants to encourage you to bring in more business.
Another example is the “good” student discount. Insurance companies typically charge younger students higher insurance, but you can expect to spend less as a “good” student with at least a B average in school. So if you or your child falls within this category, this is one way to save money without sacrificing service.
Other discounts include the multiple policy discount and the profession-based discount. So make sure you get an insurance agent to confirm if you qualify for any of these discounts before purchasing a car insurance policy.
3. Maintain a good driving history
Accidents, traffic tickets, and DUI charges can bump up your car insurance premiums. In other words, your lifestyle and driving behavior can influence your car insurance cost. Therefore, to reduce the cost, be a safe driver, keep your eyes on the road, and avoid distractions and traffic violations.
Thankfully, there are ways to redeem your driving records. For instance, if you get a ticket, you might be given the opportunity to dismiss it or reduce the violation points by going to traffic schools. Alternatively, you can take a defensive driver course to save money on car insurance policies. In addition, young or inexperienced drivers can save on car insurance by taking approved professional training.
4. Improve your credit history
A driver’s credit history is a significant determinant when it comes to calculating the insurance costs. In some cases, it could be given more consideration than your driving record (except in Hawaii, Michigan, California, and Massachusetts). This is because insurers use your credit score to predict the likelihood of you making a claim.
So if you have a low credit score, your premium will likely be higher than someone with a high credit score. Although having a bump in your credit score now doesn’t mean there will be a reduction in your current policy premium. However, you‘ll notice the difference during your next car insurance shopping.