Everyone wants to save money on his/her car insurance of course, but here are 6 easy tricks that you can do TODAY to lower your rate immediately or in the future.
~Combine Your Policy With Your Roommate / Significant Other In The Same Household
I know that “going insurance steady” is a terrifying concept if you live with your boyfriend/girlfriend and nobody really knows what the relationship is or where it’s going. But let me assure you, if you’re already living with the person, splitting all of your physical stuff and finding another place to live is going to be much more of a pain than simply calling your insurance agent and saying you want to have your own policy again. Earning a multi-car discount can save both people in excess of 15-20% on their monthly rate.
~Bundle Your Home or Add A Renter’s Policy
Everyone’s heard this trick. “Bundling” is all over the national marketing campaigns now. But I still see a ton of households not taking advantage of the Auto/Home discount by having their policies with the same company. This is probably the best discount you can earn – it can be as much as 20%! If you’re a renter and paying too much for car insurance, adding this policy to protect your property can sometimes be nearly free because of how cheap the renter’s policy is coupled with how significant the added discount is.
~Keep An Eye On Your Credit Report and Score
A huge determiner of your car insurance rate is your credit score and credit report. Fixing your credit is certainly not an overnight process, but keeping tabs on it and making sure you don’t have silly collections out on you for $25 can really go a long ways in repairing your insurance score. Paying that $25 outstanding cable bill from two years ago could not only bump your credit but also lower your next car insurance renewal.
~Pay In Full
If you have the extra cash on hand, paying your entire 6 month premium up front can often save you 6-8% over the course of your 6 month term. It may seem meager, but if you’re trying to trim down that budget without sacrificing coverage, it can equate to $5-10 a month in savings. This option is also available if you’re in the middle of your term and want to just pay it off. You are probably saving yourself a couple dollars a month in processing fees by going this route. There are companies that charge $5 a month just for using a credit/debit card.
~Check For Occupational and College Degree Based Discounts
It’s becoming better advertised that some companies offer discounts for certain professions like policemen and registered nurses, but did you know that by simply having certain college degrees you can qualify for a discount? Engineering, Biology and Chemistry are all degrees that I’ve seen companies offer discounts for. It doesn’t cost you anything to ask and it doesn’t always require you to have a job in the field to benefit from the discount.
~Increase Your Liability Limits
This seems a little bit counter intuitive, since raising your liability limits will marginally increase your monthly rates for the short term. BUT! If you’re carrying limits that are 50/100 or lower, the insurance companies are already rating you for having such low limits. Carrying 6 consecutive months of limits that are 100/300 or higher will award you with significantly better rates than if you carry 50/100 or lower. The difference can be upwards of $200 per term, depending upon the insured. Think of it as rehabbing your insurance score so the companies see you as a more favorable risk!
That’s it! Which of these sound like something you could take action on today? Get out there and save some money the smart way. Oh, and don’t forget the obvious ones: avoid at-fault accidents and don’t let your policy lapse for any reason!
To better spending!