3 Ways to Cut the Cost of Car Insurance

by SpeedLux
car insurance

If you own a car, insurance is essential. However, you don’t have to spend a fortune to access the cover you need. If you want to reduce your expenses, making changes to your insurance arrangements could be a good way to achieve your goal. With these savvy tips, you could save hundreds of dollars on your premiums:

1. Increase Your Deductibles

When you claim on your car insurance, you’ll typically need to pay a deductible. Increasing your deductible can range from around $250-$1,000, but most insurers will let you choose how much you set your deductible at. Choosing a higher deductible can lower the cost of your monthly or annual premiums, so it can be a viable way to save yourself some cash. 

If you do choose to increase your deductible, do make sure you’ll have access to the funds you need if ever need to claim on your insurance. Providing you’ve got the flexibility to access the cash if you need to, increasing your deductible can be a good way to leverage your funds and reduce the upfront cost of insuring your vehicle. 

2. Get Age-Based Insurance

When you apply for car insurance, your age, location, and driving experience have an impact on how much your policy costs. By choosing auto insurance that’s designed for your age group, you can make significant savings. With AARP insurance, drivers over 50 can access reduced premiums and extras, like 12-month rate protection and lifetime car repair assurance. 

However, there are plenty of options for younger drivers too. Many insurance companies offer policies tailored towards new or inexperienced drivers, for example. As many young drivers often face high insurance costs, reducing premiums by installing a black box, also known as telematics, offers premiums based on current driving behavior instead of historical performance in your car.  This can be one of the best ways to reduce your costs if you a  safe driver.

3. Reduce Your Mileage

Before you take out a car insurance policy, check what mileage you’re covered for. Some policies cover you for unlimited mileage, whereas others specify mileage limitations. By implementing your mileage limit, you could reduce the cost of your premiums. If you only use your vehicle to travel locally, this could be an effective way to minimize your expenses. However, you will need to monitor your mileage throughout the year to ensure you don’t exceed the limit. 

Remember – some insurance companies charge you an administration fee to make changes to your policy partway through the year. By looking at your average annual mileage and planning your vehicle usage, you can accurately estimate your mileage and avoid paying any extra fees. 

Choose the Right Insurer

Although there are plenty of insurance companies out there, they don’t all over the same level of service or the same types of coverage. By getting a range of quotes and looking at online car insurance reviews, you can determine which insurer can offer you the best policy. With online quotes available in seconds, cutting the cost of your car insurance has never been easier.

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SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


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