If you’re looking to find low cost car insurance, the answer may be closer than you think. In fact, you may not even need to change insurers in order to lower your car insurance bills as you can find some cost savings through reviewing your current car insurance policy.
One way to turn your current insurance into low cost car insurance is to pay your entire bill up-front instead of opting for the monthly installment plan. While it can be challenging to come up with the larger sum up front, paying your entire premium at once can considerably lower your bill. If your monthly service charge is $5.00, paying your bill at once will save you $30 over six months, or 6% on a $500 car insurance policy, which can add up to some pretty significant savings.
Another way to turn your current policy into low cost car insurance is to thoroughly review your bill to ensure that you need all of the coverage that you are currently paying for. For example, if you are a AAA member, you may not need coverage for towing under your car insurance policy. You can choose not to have rental car coverage if you don’t think that you will need it in case of an accident. Removing these charges from your bill can bring you even closer to low cost car insurance.
If your car is older, it may make sense for you to remove collision coverage from your car insurance. Let’s say that you have a 1997 Pontiac Sunfire that is worth $1750. If you’re paying for collision coverage on the car, you are most likely paying at least $100-$150 per year to cover the car in case you are in an accident and require work to be completed. Since this coverage is almost 10% of what the car is actually worth, it doesn’t make sense to pay for collision coverage on the car in this case.
In order to ensure that you have low cost car insurance, you’ll also want to check your deductible amount. The lower the deductible amount (or the amount that you will pay for work completed if you are at fault in an accident), the higher insurance cost. It is a risk to increase your deductible level, but this may make sense from a financial standpoint. If you haven’t combined your home and car insurance to one insurer, you may want to consider doing this as well since this can also decrease your rates by 5-10%.
Completing these steps can put you on your way to turning your current policy into low cost car insurance. Of course, you can always look at competitors to lower your rates and you should apply this advice to any plan you consider, whether its your current policy or a new one.
