Money For Lunch – How to Save Money on Your Car Insurance Policy

How to Save Money on Your Car Insurance Policy

April 20, 2017 9:22 AM0 commentsViews: 7

 

Many car owners experience frustration when they are in the process of finding car insurance coverage they can afford that they often forget about their policy once they have one. However, did you know that if you are not paying close attention to your auto policy, you could actually be spending a lot more money than you think you are every year in insurance?

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Even though it is easy to assume that car insurance is a cost that is fixed, it really is not. In fact, the amount of money you pay in car insurance premiums can be lowered so you can save money. Your individual savings will depend on the type of vehicle you have, your driving record and your location. However, you could end up saving hundreds of dollars every year. You can speak with your State Farm Edmonton agent to find out how you can save money on your policy.

Increase Your Deductible

Typically, when a driver chooses a deductible for their car insurance policy, they tend to stay with that amount. Did you know that increasing the amount you pay out of pocket for any fender benders you are involved in can lower how much you pay yearly?

This is seen by many drivers as a gamble because they will have to pay more for car accidents they are involved in. The good news is that if you and anyone on your policy has a history of being safe drivers, you will end up saving money.

If you feel anxious about the higher deductible, you can start placing some money aside in an emergency fund so you will not be caught having to pay for damages you do not have money for.

Join a Carpool

Carpooling offers benefits that go far beyond simply being eco-friendly. If you make the decision to carpool with just three other people, and each person drives for one week, you will be able to reduce the miles you drive every month by almost 80 percent. We all know that the less you drive your vehicle, the more money you will save.

The actual amount you will save will vary depending on many factors, but you may be able to save as much as 25 to 30 percent a year.

Only Purchase What You Need

The type of auto insurance coverage you need when you first purchase your car will likely be a lot different once the car is older. For example, when you are financing a car, you will be required to have collision and comprehensive coverage on your vehicle.

Comprehensive coverage will help pay for repairs and replacement needed due to damage that is not the result of a car accident, and collision covers the same repairs in cases of car accidents.

Once the car is paid off, you can save money by dropping collision, especially if the car was already older when you purchased it. Comprehensive coverage will still be important because it will protect you in case your car is damaged by natural causes, theft or vandalism.

These are a few ways you can save money with your auto insurance policy. Do not hesitate to consider making adjustments to your policy to suit your current coverage needs.

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