While saving money is always a good idea, it can be difficult to accomplish when your monthly income is quickly eaten up by your ongoing expenses. If you are in this situation, finding ways to save money on some of your ongoing expenses could provide some extra funds to build your savings. Car insurance is one example of an ongoing expense where the monthly expense may be able to be reduced to help you free up some extra cash.
Get a different car
One of the best ways to save money on car insurance is to make sure that the car you are driving is not one that requires higher premiums. For instance, models considered to be high-performance or sporty models may be considered at higher risk of being stolen or involved in an accident, resulting in higher premium amounts. In general, models that are brand new or high-end will also cost more to insure than models that are more mid-range in value, size, and equipment.
Sign up for monitoring
Some car insurance providers offer reduced rates for vehicle owners who agree to use monitoring devices in their vehicles. Small monitoring devices plug into your vehicle's computer system and provide insurance companies with real-time information on your driving habits, including where and how far you drive.
Explore usage-based insurance
A relatively new way to save money on auto insurance is based on how often you actually use your car. If you are not a daily driver or you only drive a few miles a month, usage-based policies may offer considerable savings over traditional car insurance policies. This type of insurance will also require drivers to agree to use a monitor in their vehicle capable of keeping track of the mileage the car is driven.
Shop around for coverage
Drivers who want to save money on the cost of car insurance can shop around and compare prices and coverage. A good way to do this is to either check with several companies individually or work with an independent auto insurance broker who can shop hundreds of companies to find the best price.
When discussing your situation with a car insurance broker, be sure to ask them to compute the savings you might realize by making some changes in your plan. For example, raising the deductible amount or reducing or removing coverage options you are unlikely to need may result in a considerable savings on the cost of your monthly car insurance premiums.
For more information, reach out to a local auto insurance provider.