Ugh. Insurance, right? What a pain. What a nuisance. What an expense!
The bad news is, if you drive a car, you have to have insurance. Not having it is very much against the law, and will get you into a great deal of trouble if you get caught without it.
The good news is, insurance doesn’t have to cost an arm and a leg. Here are a few things you can do to reduce your monthly car insurance payment.
Carry Liability Only
It’s surprising how many people don’t seem to know this, but you aren’t required by law to carry coverage on your vehicle itself. You can have “liability” coverage, which essentially covers you, the driver, if you cause a wreck that damages somebody else’s car. The insurance company won’t pay for repairs on your vehicle, but you’ll stay out of hot water with the law and the other driver.
Now, there is a caveat to this. If you still owe money on your car, your lending institution will probably require you to carry comprehensive coverage on it until it is paid off.
Raise Your Deductible
Buying insurance is essentially a matter of making a bet. The higher your deductible, the more confidence you’re showing in your ability to avoid a collision. Well, the insurance company is making the same bet, so the lower your deductible, the higher your premium will be, and the higher your deductible, the lower your premium will be.
There is no way to “win” here, but if monthly expenses are your biggest priority, then it makes sense to opt for a higher deductible/lower payment.
Find the Discounts
Discounts vary depending on your insurance company, but drivers can often find discounts for things like taking the bus, for driving under certain mileage thresholds and taking defensive drivers courses.
Look through your insurance company’s website. There is probably a discount for you.
Watch Your Credit
Your credit score isn’t just used for evaluating your risk as a borrower of money. Some companies — and insurance companies are among them — use your credit score to make a judgment about your general reliability, like, as a person. Your credit score is a factor in your insurance premium, so it is a good idea to make sure it’s correct, at the very least, and to work to improve it. Paying off outstanding balances, paying your bills on time and avoiding carrying large credit balances are all good ways to improve your score.
Of course, if your car is in bad enough shape that you’re not carrying comprehensive coverage on it, this is probably a good time to shop for a new one. Come see our friendly sales staff at Ron Carter Cadillac, and we’ll get you into just the right vehicle for your budget and lifestyle.