Car insurance is a necessary expense that many people have trouble affording. While it is usually best to have as much coverage as possible, the possible amount depends on your income.
Before you stress about paying more for car insurance than you can possibly swing every month, make sure you explore every avenue possible to save money. Here are some smart ways to save money on your car insurance.
1. Remove Unnecessary Coverage
Some coverage just isn’t necessary, especially if you have an older vehicle.
For example, comprehensive coverage is important to have. It covers your vehicle if it is damaged by something other than a collision. Say a tree falls on your vehicle during a storm or you are the victim of a robbery, your insurance will pay out. Why would anyone want to cancel a coverage like this?
The unfortunate part about comprehensive is that it is extremely expensive. It can nearly double your premiums. If you have a newer vehicle, it’s important to keep it, but if your car isn’t worth much, you’re wasting your money. It’s pointless to add $500 to a six-month premium if your car is only worth $1,000.
Another coverage you can opt to remove is collision coverage. This type of coverage is an additional cost and allows your insurance to cover your losses if you are in a collision with something other than a vehicle.
If you run into a tree or a telephone pole, collision has you covered. This happens very often, especially since it’s a natural reaction to swerve away from other cars when you see an accident coming. This could be omitted for the same reason as comprehensive insurance.
Since the coverage doesn’t involve other drivers on the road, it doesn’t compromise your ability to cover someone else when you’re at fault. Before purchasing car insurance in Seattle, check to see if you’re over-insured.
2. Browse Available Discounts
Some discounts are offered by just about every auto insurance company, such as multi-car and multi-policy discounts. However, sometimes you can find completely different discounts with different companies. Don’t go with whoever you heard has the most discounts because most might not even pertain to you. Make sure you browse every discount that every insurance company has and consider the ones who have the most to offer you.
You can do that much more easily with this chart. It includes 10 major insurance companies such as Geico, USAA, Nationwide, State Farm, Travelers, and more. It lists every discount offered by auto insurance companies and checks off which ones each of them will offer. Go through the list and see which ones you think you’d qualify for, and find the companies who offer all or most of them.
3. Think Twice About Add-ons
Some of the add-ons offered by insurance companies are a must; Sometimes you’ll realize that you don’t even need them.
If you have a new car that is still under warranty, roadside assistance isn’t necessary. Your warranty should cover anything that could go wrong with your vehicle, including towing, so you’re wasting your money with the roadside assistance through your insurance company.
Another add-on most people don’t need is medical coverage. Many people think it covers medical bills of other people involved in an accident, but it only covers yours. Unless you have poor or no medical insurance, it’s generally unnecessary.
If you’re trying to save money on auto insurance, you can do so without raising your deductibles or doing something else that can hurt you in the long run. It’s important that you understand what your coverage types mean so you aren’t accidentally over-insured.