Whether you are the sole driver on your insurance or you are preparing for a teen driver, these Ways To Save Money On Car Insurance are going to make your budget easy to manage!
Many times I write about ways to save money and “cut the fat” when it comes to expenses in your monthly budget, but there are times when being frugal is not always best. When it comes to your car insurance policy, using your head before factoring in cost is pretty important. A car is a very important part of any family’s financial structure. Ensuring your investment is also very important. It is one of those “immovable objects” in your monthly budget. Not properly taking care of your investment can set you on a path to a different kind of unexpected pitfall. Often I talk about financial freedom, but ensuring the investment in your family’s vehicle will also lead to financial freedom. Not having the proper coverage in case of emergency or accidents can be catastrophic to the financial foundation of a family. The trick to making sure that you are properly protecting your assets and not wasting your assets is to do your proper research and due diligence.
5 Ways to Save Money on Car Insurance
1) Know your policy.
This one seems pretty self-explanatory, but you would be surprised to know how many people do not know or understand what is on their insurance policy. Most of the time you have an insurance agent that you can call with any questions. Why not use them to find out what you want to know? Have them work you through it simply and explain the different points on your contract. Know what your money is going towards, and know what your responsibility is in the case of actually having to use your policy. This is one of the most important ways to save money on car insurance.
2) Know what is out there.
There are many companies out there competing for your business. Why not look around? Keep an open mind and look everywhere. Turn to your social media and get references from your friends. They may have a friend or relative in the business would be more than happy to help you find a great policy that meets your needs and keeps the cost out-of-pocket low.
3) Know the value of your car.
This is one that requires that you actually keep up with your vehicle history. You should familiarize yourself with the website Kelley Blue Book (www.kbb.com). From the moment you drive your car off the lot, it starts to depreciate in value. Why are you renewing your policy constantly on out-of-date information? A lot of times if you are trying to keep your monthly costs low you will choose a higher deductible. If your vehicle is worth less than your deductible, you are essentially paying for a policy that will not help you at all in the case of an accident.
4) Know the discounts.
Look into what things will help you save money on your policy in regards to the state of your car. Did you get a new paint job? The color may affect your policy price. Did you get a new antitheft system installed? It too could affect your policy price. This your house would have more than one vehicle? Are there any young drivers? Are you a student getting good grades? Do you only use your car for work purposes only? Again, talk with your agent and they can walk you through finding these discounts and keeping track of what information will raise and lower your policy every month.
5) Don’t coast by.
Due diligence. Some people like to pay for their policy all at once. Once a year or twice a year. In a way that can be great because you know that you’re covered and it is one less bill to stress about. But, it will sometimes lull you into a sense of complacency when it comes to keeping track of your policy. I would say that for most people who are trying to live a frugal lifestyle, reevaluating your policy every 3 to 6 months is probably a better solution. I would write in your calendar the month before your policy is due to be paid for and/or renewed to start the journey of researching your policy all over again. Certainly every six months at the very least the value of your car has changed based on mileage. Being on top of things like that really add up in the long run. Personally, I would not change policies too often unless the value was really there. Customer loyalty can be rewarded in an insurance world. Build up a rapport with your agent so that they are always on the lookout for discounts to keep your business.
At the end of the day, it is important that you keep in mind that your car is just as important as an investment in your family’s financial future as any stock or savings account. Treat it as such. These tips for how to save money on car insurance are a great place to begin. Don’t miss out on our other great savings tips below!
Read these other tips:
Read part 1 of Angie’s Living on $30,000 Best Frugal Tips on Thriving and (not just surviving) on $30,000 a year!
Part 2 – Basic Home Budgeting
Part 4 – How to Not Spend Money
Part 6 – Money Management Skill
Part 7 – Why Couples Should Talk About Money?
I am a stay at home mom and happily married to my husband Tom. I have a five year old daughter and a two and a half year old son. I grew up in Orlando, but went to school in New York City and lived in Los Angeles before moving home to raise a family. I have worked in the film industry since the early nineties, and for over a decade with the Florida Film Festival. I also spent many years working in marketing with Glaceau and Honest Tea. But, I am happiest at home building my family.
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