In the car buying world, one of the easiest ways to save money is to reduce the amount you pay for car insurance. There's a lot of competition in this space and rates are constantly changing, so why not take advantage of the situation?
If you take the time to comparison shop, you can realistically save $1,000 or more per year on car insurance.
And it's usually very easy to switch providers. Most allow you to cancel your policy at any time. But before you switch, give your current provider a chance to beat the lowest rates.
There are several ways to save money on car insurance.
First, you should compare rates at least once a year. There are few things in life that give you big rewards for such little effort. Comparison shopping insurance rates is one of them!
Other ways to save money: set your deductible to $1,000. This can save you up to 40% on your premiums. You should also report any reduced mileage. For example, if you start working from home or become unemployed, you will likely be driving a lot less. Insurance companies provide reduced rates for those driving less than 7,500 miles per year, so it pays to let them know when this change occurs.
Be sure to take advantage of all discounts. There are tons of discounts offered by different insurance companies - some of which can save you up to 30% on your premiums.
Most people think the main purpose of car insurance is to pay for your own damages after an accident or to replace your vehicle if it gets stolen. While that is one benefit to auto insurance, it's not the main purpose.
The main purpose is to provide liability protection in case you injure or kill someone during a car accident or cause damage to other people's property.
Each state requires a minimum amount of liability coverage when you get car insurance, but these minimums are usually too low to offer real protection.
Getting an umbrella policy to protect you beyond the limits of your ordinary car insurance is a smart choice - especially if you own a home.