With gas prices rising more than Jeff Bridges in The Big Lebowski, the need to save money in any way possible is more necessary than ever. The cost of buying a car, maintaining it with all the maintenance costs and gas prices will have you digging so deep into your pockets that it could open it up. While you can’t do much to lower the cost of car, service, and gas, with a few smart steps and practices, you can save a lot on car insurance.
To get the best auto insurance policy that meets your needs and doesn’t hurt your wallet, here are some simple steps to choosing the best cheap auto insurance for your budget. Get the most out of your auto insurance and pay the least, that’s what you’ll get with these steps. Let’s start.
Liability insurance is the most expensive part of car insurance and is mandatory in almost every US state. So there is no way to avoid it. But there is a way to cut costs. Liability coverage comes with a minimum coverage limit, which is the amount the insurance company will pay in the event of an accident.
Each state has its limit. All you need to know is how high your state’s liability limit is, then just keep your liability coverage limit a little higher than that. For example, in the state of Louisiana, the minimum liability coverage limit is 15/30/25 ($15,000/$30,000, $25,000 for miscellaneous damages in the event of an accident). But many companies will try to sell you a 100/300/50 liability limit.
Although you should have liability coverage above the minimum limit, it doesn’t have to be extravagant. So talk to your auto insurance provider and try to find the amount you’re comfortable with.
Don’t get stuck with the insurance policy your Uncle Mark uses and he told you to get it because “it’s the best.” The most common reason people end up paying more for auto insurance is due to lack of research. Insurance policies last for years, and it would be criminal not to browse through the various car insurance companies and choose the cheapest car insurance provider. With just thirty minutes of research, you can save hundreds of dollars. So why not?
There is auto insurance you need, some you want, and some you get for no reason. That’s why try using the “select or omit method” which will help you eliminate policies that you may not need. For example, collision and comprehensive insurance are very important to protect your car, but if your car is a very old fossil, you don’t need to pay thousands of dollars a year to get it repaired.
Likewise, add-ons such as engine protection cover, roadside assistance, etc. only worth it when you really need them. If not, they are just another way to lose money. For example, if all you do with your car is commuting to work and maybe a weekend driving around town. So what are your chances that your car breaks down in a desolate place and you need roadside assistance? Chances are low, so skip it and save more.
This one goes without saying. Having a clean driving record automatically lowers the cost of auto insurance and premium because the company views you as low risk. So avoid speeding tickets, traffic violations, drunk driving and, of course, accidents.
Did you know that if you make no claims for the entire duration of the insurance policy (which is usually one year), you can get significant discounts when renewing the auto insurance policy? The rebate differs from company to company, but it usually starts at 20% and increases each year because you do not make any claims. So drive safe, keep your car and driving record intact and save more. It’s a win-win and win-win situation.
Don’t get stuck with a policy just because it was the best at the time. Also during the renewal period, do a quick search to see if other insurance policies offer the same or even better coverage at a similar or lower price. If you find one, then change.
This tip will help you save a lot if you trust your driving skills. A lot of money is spent on car insurance premiums. But there is a way to bring it down. Increase your deductibles and this will automatically lower the price of the premium. The downside is that in the event of an accident, you will have to pay more out of pocket.
Many people make the mistake of buying auto insurance from the dealership they bought the car from. It’s not a smart thing to do, because dealerships team up with insurance companies and try to sell you a lot of stuff you don’t need. And while you’re making the “big” payment for your car, you don’t mind paying a few extra bucks for insurance. But those “extra few bucks” can be saved if you buy car insurance.
Make an annual payment
Once you find the best auto insurance policy for you, you’ll stick with it for at least a year. So why not pay the premium price all at once and save some money? Full payment of the insurance premium usually comes with a good discount. It also saves you the hassle of monthly payments.