Car Insurance Hacks to Save You Money

Car insurance is essential for protecting yourself and your vehicle (and is required by law in most states). This doesn’t mean you should overpay for coverage though. With the right strategies in place, you can reduce your premiums without compromising on your coverage. Here are ten effective car insurance hacks to help you save money on your car insurance:

 
1. Shop Around for the Best Rates
   Insurance premiums can vary significantly between providers. By regularly comparing quotes from different insurers, you can be positive you are getting the best deal. You can also negotiate or ask your current provider to match a competitor’s offer. The easiest way to shop rates is to work with an independent agency like Sparks Insurance and let them do the heavy lifting to find you affordable coverage you can trust.

2. Bundle Your Policies
   Many insurance companies offer discounts when you combine multiple policies like home and auto insurance. Bundling your polices can provide you substantial savings and can simplify managing your insurance needs. Even with an independent agency like Sparks Insurance, you can bundle multiple policies for savings.

3. Increase Your Deductible
   Your deductible is the amount you will pay out of pocket in the event of a claim before your insurance kicks in. If you currently have a $500 deductible but know you can pay more in the event of an accident, raising your deductible to $750 or $1,000 can lower your monthly premium. Be sure you have enough savings to cover the higher deductible in case of a claim.

4. Maintain a Good Credit Score
   Insurance providers often consider your credit history when determining premiums. A higher credit score can lead to lower rates. Always make on-time payments and be sure to regularly check your credit report and address any discrepancies so you can maintain a healthy score.

5. Take Advantage of Discounts
   Insurance companies offer a variety of discounts that you might qualify for, including:
   • Safe driver discounts for maintaining a clean driving record.
   • Low-mileage discounts if you drive fewer miles than average annually.
   • Defensive driving course discounts if you complete an approved course.
   • Student discounts for young drivers who earn good grades.

   Be sure to always ask about available discounts so you can maximize your savings.

6. Drop Unnecessary Coverage on Older Vehicles
   Older cars can have lower market values, meaning the cost of your comprehensive and collision coverage might exceed the potential payout after an accident. Consider adjusting the coverage on older vehicles to the minimum needed or minimum required by law.

7. Install Safety and Anti-Theft Devices
   Safety features reduce the risk for insurance providers, which can lower your premium. Consider equipping your vehicle with features like anti-lock brakes, airbags, and anti-theft devices that will potentially qualify you for discounts.

8. Sign Up for Driver Monitoring Discounts
   Some insurance companies offer discounts through driver monitoring programs where your driving habits are monitored through a smartphone app or a device that plugs into your car’s diagnostic port. These usage-based insurance programs review habits such as speed, mileage, and hard breaking. If you’re a safe and/or infrequent driver, you can benefit from reduced premiums based on your actual driving behavior.

9. Pay Your Premium in Full
   Some insurers offer discounts for paying your premium in a lump sum rather than monthly installments. By paying your premiums six months or one year at a time you can also help you avoid installment fees. Be sure to save a little each month so you’re ready when the premium comes due.

10. Regularly Review and Update Your Policy
    When you move, change jobs, or even alter your daily commute you want to be sure to review and update your policy, as all these things can impact your insurance rates. Be sure to take the time to ensure your policy aligns with your current circumstances and are not paying for unnecessary protection.

By implementing a few of these strategies, you can effectively reduce your auto insurance costs while maintaining adequate coverage and protection. Ready to save with coverage you can trust? Contact Sparks Insurance today for a personalized quote and let us help you find the best rates available!