Car insurance. Whether you hate it or love it, the expense is a pretty much a must. While you might not have a choice about paying this monthly bill, you can reduce the costs to fit your budget better. Here are a few ways to save money on your car insurance premium.
1. Switch Around Drivers
There could be a big price difference by switching which driver drives which car. For example, I had a ding on my driving history from too many tickets in 2009. This negatively affected the cost of my husband and my insurance even three years after the tickets. One thing that helped save us about $15 per month was to simply switch which driver drove what car with the insurance company. Since I was considered the "bad driver," sticking me with the older car that was paid off ended up costing a little less. This small change saved us about $180 a year.
Simply call your car insurance company to make sure you are getting all of the discounts necessary. Just ask them to see if your price goes down if you switch the driver's main car. You might be surprised. Even a few dollars' difference can add up over time.
2. Compare Rates Regularly
This is very common advice, but many of us get stuck with the same company for several years and just assume we are getting the best price. Car insurance companies will reward you for loyalty, but this discounted price might still be more expensive than other insurance companies. Right now, the insurance company we have been with for the past six years has given us the cheapest price. However, my husband recently totaled his car in May, so it will be best for us to compare prices once again after the premiums go up.
3. Insurance Savings for School
Some car insurances will give you a lower rate if you have a four-year college degree. The DMV said, "Having a higher level of education often comes with the benefit of lower car insurance rates. Again, this is based on the statistical averages. Someone with a four-year degree or a graduate degree is statistically less likely to be in an accident."
If you are under 25 and are in school, your grades could also help you earn a discount. It is an added step to fax over your grades, but doing so could save you up to 10 to 15 percent on premiums. Therefore, if your insurance costs $1,000 per year for just the student driver, then keeping a 3.0 GPA will save you $100 for the whole year.
4. Set Up Automatic Payment or Pay in Advance
Some insurance companies might even give you a discount for setting up automatic payments or for paying the whole year up front. This is worth looking into. Sure, $10 or $20 in savings isn't a lot for paying the whole year upfront, but it is a nice bonus. You also won't need to worry about a monthly bill either.
While the monthly bills make car insurance hard to be thankful for, it truly can save you money in the long run. After seeing how expensive one car accident is (and it wasn't even a major accident), I am definitely thankful for insurance companies.