There are so many things you have to spend money on each month that it can be a bit overwhelming at times. As much as we all try to save our money and spend wisely, we often come up with little to no money to show for it at the end of the money.
So, how can you save money when you have bills to pay? One great way to start is by seeing if you have any bills that you can reduce. For example, you can save on your auto insurance if you make some phone calls and changes to your policy.
The simplest step to lowering your insurance premium, and one that few people actually take, is shopping around and comparing prices from different insurance providers. Every provider wants you as a customer, and they’ll do whatever they can to beat the rates of other providers.
Call around to a few different insurance companies and get a quote from each of them. Once you’ve got a full list of quotes compiled, you can make a more educated decision on which company you want to go with.
Full Coverage vs. Liability
There are two types of coverage when dealing with auto insurance: full coverage and liability coverage. With liability coverage, your insurance provider will only pay for damages you cause to another person’s property as a result of an accident. Full coverage, on the other hand, will pay for damages to both your property and the other party’s property.
The drawback to full coverage is that it costs a lot more than liability coverage. The only time you need full coverage is when you’re purchasing insurance for a vehicle you haven’t fully paid off. If you’re looking to save money on your monthly bill, consider switching from full coverage to liability coverage’especially if you have an older vehicle.
Lower Your Deductible
Every car insurance plan has a deductible. Your deductible is the amount you must pay out of pocket if you file an insurance claim. It’s also the point at which your insurance kicks in’ any repairs that cost less than your deductible must be paid for out of pocket. The higher your deductible is, the lower your monthly insurance bill will be.
Many people have a deductible around $250 or $500. The problem with this is that many of the most common repairs, such as small dents, cracked or chipped windshields, or even full windshield replacements, often cost less than your deductible. That means you end up paying for these small repairs out of pocket while simultaneously paying a higher premium. Conversely, almost any two-car accident will cost over $1,000, although you would then have to pay that $1,000 deductible.
If your car is expensive or you don’t plan on making any small repairs to it, you may be able to save a significant amount by raising your deductible a bit.
Look for Discounts
Once you’ve made all your decisions about your auto insurance policy, you can make your purchase. When purchasing coverage, make sure you ask about all the discounts the insurer offers. Most auto insurance companies will offer discounts if you bundle multiple types of coverage together. There are also discounts for members of the military, people who have great driving records, people with good credit, and more. Some of these discounts can even save you as much as 20% on your monthly premium.
Between gas, insurance and maintenance, driving a car can be expensive. If you take advantage of these money-saving techniques to reduce your monthly insurance premium, though, you can save money without sacrificing coverage.