Car insurance can take a big bite out of your monthly budget. Here are seven ways to save on premiums:
1. Shop around for the best rates. Websites like Insurance.com make it super-easy to compare rates from multiple companies.
2. Review your policy. Recent changes in lifestyle or driving habits—like marriage, or a shorter commute—may make you eligible for lower rates.
3. Choose a higher deductible. The higher your deductible, the lower your premium–just make sure you have enough cash to cover it in your emergency fund.
4. Drop collision and comprehensive coverage on old, cheap cars. Don’t pay for this extra coverage if damages are likely to exceed your car’s value.
5. Consolidate policies. Get a multi-vehicle discount by insuring all of your family’s cars on the same policy.
6. Ask about discounts. A good driving record, membership in certain associations, or safety and anti-theft equipment in your car may qualify you for reduced rates.
7. Don’t pay for unnecessary coverage. Drop extras like towing and rental car coverage if you don’t need them—for example, if you belong to AAA, or have access to other transportation if your vehicle is in the repair shop.