Mammoth AwardsWouldn’t it be great if you could drive your car without auto insurance? Doing so would save you a nice chunk of change each month. But what happens when you have an accident? That’s where that monthly premium you pay finally saves the day.
So, knowing that car insurance is a must, this should be your next money-saving goal: To pay as little as possible. In case you didn’t know, there are several ways to reduce your car insurance premium while still keeping the coverage you need for peace of mind. Here are some of the more underrated ways to save on auto insurance:
Opt for Pay-as-You-Go Insurance
Do you drive less than 10,000 miles per year or close to it? If so, pay-as-you-go insurance could be right up your alley.
Snapshot from Progressive and Safe & Save from State Farm are two examples of pay-as-you-go insurance. How it works is this:
- The insurance company installs a tracking device in your car.
- How much you drive, when you drive, and other driving habits are monitored.
By allowing this tracking, you can enjoy cheaper insurance than with a standard policy. And while it may seem like something out of the future that’s a tad intrusive, you may find that the potential savings are worth it.
Buy a Smaller Car
Can driving around in a massive truck or SUV help you feel more secure? Of course, but that doesn’t mean you’ll pay less for car insurance by going big.
Bigger vehicles can be more expensive to insure, even if they’ll keep you safe in an accident. So unless you need a mini tank to haul your loved ones around, you may want to go smaller with your vehicle purchase. Doing so will help you save on insurance and gas.
If you want the most bang for your money-saving buck, get a small commuter car that’s a hybrid or takes alternative fuel. Some insurance companies will reward you with a discount in exchange.
Ask Your Agent a Ton of Questions
If you think your insurance agent will tell you about all the available discounts, think again. Sure, you may have a helpful agent that’ll dish the dirt on deals, but chances are, they won’t.
Make it a point to ask for any available discounts. Some companies offer them for everything under the sun, such as:
- Membership in groups or organizations
- Military service
- Paying premiums for six months or a year in advance
- E-billing and electronic documents
Are those the only discounts that are usually offered? No, they’re just a sampling, so don’t forget to ask and be persistent.
Not All Coverage Is Necessary
Tell your agent that you only want to pay for what you need. As such, the following may not be necessary:
- Roadside assistance
- Comprehensive or collision coverage if your car is very old
- Rental car coverage
