7 Amazing Car Financing Tips You Need to Know About in 2019

Are you spending way too much on your car insurance? Wish you knew how to save money on car insurance, so you could cut down costs while still getting the coverage you need?

Sometimes saving on car insurance is easier than you’d expect. Here are 7 savvy tips for saving on car insurance, so you can cut back on unnecessary costs for your car.

1. Change Your Coverage

How much coverage do you have? How much do you need?

In most cases, it makes sense to carry a policy that fully protects you from almost everything. But in some cases, you may have a policy you entered into years ago and never updated it when your situation changed.

Optional insurance on an older car, for example, may not make sense. Once it has depreciated significantly, do you really need to be still paying these higher premiums?

This isn’t to say you should cut out everything and go with the legal minimum. But be sure to review your policy and actually know what you’re paying for. There may be an obvious move to save a bunch.

And no, just in case you’re wondering you cannot skip insurance altogether. Unless you live in New Hampshire for example, which is the only state where car insurance is not legally required. But is that wise?

2. Be a Safe Driver

Everyone thinks they are a good driver. But are you really? There is one way to find out for sure — in the form of safe driver discounts.

Most auto insurance companies now offer this. It makes sense.

It’s in everyone’s interest to lower roadway accidents and, if you drive well, you should pay less, right? It’s only fair!

There are different types of safe driver discounts. Some providers use telematic devices to actually analyze your performance on the road and others primarily look to your driving history.

Check around for the best savings options in your area. But, at a minimum, the best bet is to contact your provider and see how much lower you can make your premiums — maybe as soon as next month.

3. Raise Your Deductible

How risk averse are you? Because if you are willing to accept a bit more in potential short-term liability yourself, you may be able to get a significant premium reduction.

All you have to do is take on a larger deductible. In most cases, this will get you a lower monthly rate.

This option isn’t as surefire as the others and shouldn’t be taken lightly. You will now be on the hook for that deductible if you get into an accident.

But if you have a solid savings account for an emergency and would be able to weather it, the risk calculation may make sense in exchange for the savings.

4. Shop Around

How much you pay for car insurance depends greatly on the provider you go with. In fact, rates can vary hundreds of dollars a year for the same basic level of coverage.

If you’re a good driver with excellent credit, you have options. So, shop around for estimates and pick one of the car insurance companies.

5. Ask Your Provider How to Save Money on Car Insurance

Most car insurance providers offer discounts to lower your overall premium. But you won’t know what those savings are unless you ask.

That’s why you should ask your insurance agent to review your insurance plan for any potential savings.

For example, Allstate offers a good student discount. And Geico offers discounts for military members and federal government employees. Discounts for providers can differ by state, so be sure to ask to see what savings you’re entitled to.

6. Buy a Car That’s Cheaper to Insure

Did you know that car insurance rates differ depending on the make and model of your car? Flashy and expensive cars will cost much more to insure than smaller, moderately priced vehicles.

So, if you’re in the market for a new car and want to spend less on insurance, be sure to pay special attention to the models of cars you’re evaluating.

7. Get Your Credit Score Up

Your overall credit score plays a big role in how much your insurance provider charges you. People with poor credit tend to be faced with higher insurance costs.

Here are some ways to improve your credit score so you can save on insurance:

  • Keep your credit card balance below your credit limit
  • Pay all your bills on time
  • Don’t apply for too many credit cards

By following these simple tips, you can start to fix your credit score. This will help reduce your insurance costs in the long run.

Auto insurance can be a drag. It isn’t something we feel like we really get anything out of but we still need to pay the premium every month. That peace of mind is great. But it’s easy for it to seem like just an expense that provides nothing back.

That reality won’t change. But you can at least cut the costs quickly by changing your plan, getting a safe driver discount, or raising your deductible.

Combined with some other cuts here and there, it may make a big difference. That way, you can stop devoting so much money each month to a feeling of security and start using it on things you love.