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If you’re willing to think outside of the box, it’s more than possible to reduce your monthly auto insurance bill by a significant amount. Sadly, few car owners explore their options in this arena. Here are just a few fruitful ideas worth investigating that can lower your total insurance expenses over time.
Self-Insure to the Max
Monthly premiums can be greatly reduced by avoiding the need for coverage in the first place. Increasing your deductible to $1,000 or more can slash your rates dramatically. If you drive carefully and use common sense, it’s easy to avoid fender benders. Stay on top of basic car maintenance and you’ll be able to ditch rental and tow coverage.
Reduce Coverage for Older Cars
If the age of a vehicle is more than ten years, it’s probably best to drop full coverage and go with strict liability protection. As resale value falls over time, you’ll likely end up paying more in premiums than you’d get from a claim settlement if you get into a wreck.
Improve Your Credit Rating
Unsurprisingly, people with above-average credit ratings pay less for all kinds of insurance. As such, it makes sense to consistently work on improving your score over time. Aside from avoiding late payments and defaults, it’s always a good idea to take out a multi-year loan and pay it back gradually.
Find Carrier-Specific Discounts
Depending on your insurance provider, there are many little things that you can do to reduce premiums. For example, taking an inexpensive driver safety course can take a substantial bite out of your rates. Furthermore, many companies give discounts to retirees, those in the military and members of certain alumni groups.
Bundle Your Insurance Wisely
Nowadays, nearly every insurance company offers automobile, home and even life insurance under the same umbrella. Try to bundle your insurance coverage by using the same company for everything. If possible, pay for six months of coverage up front. Though this approach isn’t guaranteed to yield results, that’s rarely the case.
Savviness Comes with Experience
Few people become cost-cutting wizards overnight. You’ll need to do a fair amount of research and window shopping to find the best combination of discounts available. Visit your local insurance agent and have them run you through a few options to settle on the perfect plan for your needs.