to neIf you have a vehicle, one of the biggest expenses you’ll face every year is the renewal of your car insurance. However, times are tough, and finding ways to save money is a priority for many people. If you’re wondering how you can cut your household budget, you may be thinking about how to save money on your car insurance premiums.
Saving Money on Car Insurance
Although it may seem as if your vehicle coverage is a fixed expense, this certainly isn’t the case. In fact, it’s possible to reduce your premiums if you know how to get started with cutting your costs.
Tips to Save Money on Car Insurance
One way to save money on your car insurance is to take the time to shop around. The price of a policy will differ between companies, so getting several quotes is key. Bear in mind, however, that the lowest possible price may not represent the best value for your money. Always ensure that the quote is from a company that is reputable and represents a policy that meets your needs.
You may be able to save some money on your policy by opting for a higher deductible. This will lower the cost of your premium significantly, but it’s important to remember to keep sufficient funds set aside in case you have an accident and need to pay your deductible for your portion of the costs.
If you have an older vehicle, you could also reduce optional insurance coverage for your vehicle. A good rule of thumb is to find out the current value of your vehicle and subtract the deductible amount on your car insurance policy from it. If that final amount exceeds what you pay for car insurance for your policy term, keep the comprehensive and collision coverage. If your car insurance policy amount exceeds your vehicle value minus the deductible, it may make financial sense to drop those coverages from your policy. If the numbers are close, take stock of your financial situation and make a decision based on your risk tolerance.
Most insurers offer discounts if you buy at least two kinds of policy from them, typically called “bundling”. If you bundle your home insurance and vehicle coverage together, many companies will offer you a reduced price. Also, some companies will give you a lower premium if you are a long-term customer. Discounts can vary greatly from one state to another, so make sure to talk to an insurance agent to find out what you are qualified for.
There are also some specialized discounts that insurers like MAPFRE offer to policyholders. You may benefit from MAPFRE’s Good Student discount, the Student away from home discount, and the Clean in Three discount.
Having a AAA membership is also beneficial to new customers as it could help you save on your premium with MAPFRE in addition to providing you other coverage.
There are also programs like MotionSmart, which is a form of usage based insurance that utilizes a smartphone app and analyzes your driving behaviors. You could receive up to a 2% discount on your initial enrollment and up to a 20% discount at renewal – providing you maintain a good driving record.
Now that you have an idea of how to possibly save on your auto insurance, contact your local independent agent or get a fast, free quote today on your Massachusetts car insurance policy to see how much you could save!!
