3 Simple Steps to Lower Car Insurance

As we to manage our monthly budget is a good idea to look for ways to save money.  One good area to ring up savings is on your car insurance.  We will take a look at the biggest areas where you can lower your cost.  These three main areas are your coverage, annual miles driven and leveraging a highly competitive car insurance environment by shopping.

One area you can save the most is by reviewing the type of coverage you carry.  The main area to review is the type of deductibles you carry for collision.  If you are driving an older car it will make sense to increase your deductibles.  As an example, by increasing your collision deducible from $250 to $1000 you can save over $250 a year on your policy.   To save additional money, up to $500 a year, you can remove your collision deductible all together.  Carrying no deductibles will obviously be of greater risk if you happen to damage your car.  Savings can also be captured from increasing your deductibles on Comprehensive, which covers for damages like a cracked windshield.  Comprehensive coverage is much less than collision; however, you can save an additional $50-$100 a year by reducing or eliminating your comprehensive coverage.

Another area to decrease your monthly car insurance is by reviewing your annual mileage.  Has there been a change with one of your insured cars where you are now driving less?  Maybe you can lower your commute miles by taking public transportation or by working from home?  If there has been drop or there is a sensible way to lower your miles, there are 2 ways to lower your car insurance.

The first, which we will talk about more below, is to shop around with many different companies based on your annual miles driven.  The second is to inquire about pay as you go insurance.  Typically, an insurance company will only have a couple of levels to base your mileage on, such as do you drive more or less than 15K miles a year.  Pay as you go or usage based car insurance provide more mileage levels and pricing will drop as your mileage drops.  If you drive a lower amount of miles you can save up to 30% on your car insurance.  Pay as you go will vary by state, so it is a good idea to inquire about the programs available in the state you live.

To maximize your savings the final step is to leverage the highly competitive car insurance environment by shopping around.  Each car insurance company will reward you differently for your low deductibles, good driving record and mileage driven.  The only way to find the most attractable pricing is by getting quotes from multiple car insurance companies at once.  There are many web sites that work with many of the leading car insurance companies and you only need to enter your personal information once to get several quotes.