Erin Patrick is a car enthusiast and has been associated with the automobile finance industry for nearly 10 years. She enjoys writing on behalf of Stratton and helping consumers with their entire car financing needs.
Owning a car does a number on your wallet, it is a fact of life. The car itself was several thousand and took years to pay off. On top of that you are spending well over $100 to fill up your tank each month. Need a repair? That will be another $400 or so. And then you’ve got your insurance, which is another $150+ every month. That all adds up to a huge expense. Sure, cutting down on driving will save you a little each month, but in order to save big you need to take a look at your car insurance.
Who Pays the Most?
Your risk profile plays a huge role in how much you pay. Every little thing matters to your insurers. Of course your driving record and claims history impacts how much you are charged, but so does your age, credit score, occupation, gender, marital status, where you live, the type of car your drive, and how many miles you rack up. If you pose less of a risk to insurers, they will charge you less.
Insurance rates can differ dramatically from provider to provider and from year to year. Comparison shop every year or so, to make sure you are getting the best deal. One insurer may provide you with better discounts depending on what you qualify for.
There are TONS of discounts available, but you’ll often have to do a little searching. Nearly all providers offer a multiple policy discount though. So sticking with one insurer for your home, car, and any other vehicle will typically be greatly beneficial.
You may also be able to find discounts for good students, seniors, safe drivers, specific affiliations or memberships (AARP, your college, etc.) and even alcohol abstainers. Also consider the potential cost of insurance before buying your car and invest in safety features. The safer your car, the less your insurer will have to worry about, the less you pay.
Reduce Your Coverage
Consider the value of your car and drop unnecessary coverage. As we all know, a cars value depreciate rapidly and a 15 year old car is not worth much. It is very possible to spend more to insure an older car than to replace the car. The coverage you are paying for may not be worth it.
Look into increasing your deductible – but only if you have an emergency fund. It will significantly decrease your premiums, but keep in mind if you were to get in an accident you would have to pay a LOT more out of pocket. For some, it is worth the risk.
Lastly, make sure your vehicle information is correct on your policy! Incorrect information can lead to an unnecessary rate increase. Rates can be affected by even something as simple as the wrong model name or mistakenly stating your car is a four-door as opposed to a two-door.
Have any other suggestions? Share them with the readers below!