Car Cuts

How to reduce your car insurance premiums

According to a recent study, the average cost of car insurance is $1,674 per year for full coverage. If you’re looking to reduce that number, follow the tips below.

Shop Around

The first thing to do when looking to save on car insurance is to shop around. As Money notes, in one report, two thirds of consumers who received three or more quotes saved money on their premiums. You can either shop around by contacting agencies yourself (online or by phone), or using an insurance comparison site like Policygenius.

Tie It Together

Companies will often give you a discount if you tie one or more policies together. (They call it bundling.) So if you have homeowners insurance with one company, see what kind of deal you can get by adding your car policy.

Add Protections

Some car insurance companies will give you a break on premiums if you take extra precautions to protect your vehicle. That means adding an anti-theft device, like a car alarm or LoJack.

Build Your Score

Believe it or not, your credit score is a factor with car insurance. Usually, the higher your score is, the lower your car insurance premium. Make sure your credit score is as high as possible by paying bills on time and fixing any errors on your credit report.

Drive Less

If you don’t drive often, you can save cash by switching from a conventional policy to a usage-based one. The insurer will analyze your driving using tech that attaches to your vehicle, then issue a policy based on the gathered data.

Chris O'Shea

Latest Posts

Powered by: SavvyMoney