The average American pays $1,674 every year for full coverage car insurance, which costs about $139.50 each month. This is a big expense to add to the cost of daily living.
The good news is that there are lots of ways to save money on your car insurance bill so that you can cut down your costs! Here are a few hacks that can help you get the lowest possible prices while receiving the most possible benefits.
- Discount Bundles
Car insurance companies often offer discount bundles that help you save money on other insurance coverage that you would already be paying for. This way, you only pay for the things that you truly need and avoid pricey rates with benefits you won’t use.
One popular discount method is bundling home and auto insurance together. Liberty Mutual Insurance does this; all you have to do is take a short quiz to find out how much money you can save using a bundle.
- Build Your Credit
Your credit score has a big impact on your insurance premium, no matter what you end up choosing. Do everything in your power to boost your credit score while you’re waiting to choose a plan that best suits you.
You can build your credit score by paying off old student loans, paying your credit card bill in full each month, and keeping your spending to a minimum so that you can minimize your credit utilization.
- Skip The Coverage
Collision coverage for major accidents and comprehension coverage for theft and natural wear might not be necessary for your vehicle. Older cars tend to have a much lower market value, and the amount of coverage you receive depends on your car’s value.
Assess your vehicle’s market value before you commit to paying for a coverage plan that might be too expensive for what your car is actually worth.
- Compare Each Plan
Before you commit to shelling out money for car insurance, it’s crucial to take time to sit down and compare each plan that you can opt for. There’s no point in paying for a type of coverage that you won’t use and anticipate the issues you might encounter.
You can find a chart comparing different types of insurance plans here. Prices change based on a wide variety of factors such as your gender, your driving record, and your age. Depending on which categories you fall into, you can find yourself rewarded with really low insurance prices.
