Whether you're having trouble affording your auto insurance premium or are just looking for some general ways to save money, you're in luck. Today, it's easier than ever to quote rates and add or delete coverage online, giving you the tools you need to make sure your policy fits your lifestyle and your budget. Read on to learn more about three ways you can reduce your auto insurance premiums in 2020.
Raise Your Deductibles
Your deductible, or the amount you must pay out-of-pocket toward repairs on your vehicle, can have a major impact on your premium rates. A low deductible can save you money if you're in a collision and don't have much extra cash for repairs. But if you go years (or decades) without an accident, you're likely to end up paying several multiples of your deductible in the form of higher premiums.
Instead, consider your savings balance to decide how much of a deductible you're comfortable with. For example, if you regularly keep $2,000 in a money market account, increasing your deductible from $500 to $1,000 or even $1,500 can knock your premium cost down while still leaving you with some cash if you're in an accident.
Check Your Coverage Requirements
If your vehicle is subject to a lien (such as an auto loan), the lender likely has included minimum insurance coverage requirements in the loan terms. Because the lender has a vested interest in maintaining the value of the collateral, its regulations may not allow a driver to increase deductibles, drop comprehensive coverage, or take other steps that could result in uninsurable (and therefore unrepaired) damage to the collateral vehicle.
Once your vehicle is paid off, you're free to add or drop whatever coverage you'd wish. If your risk of hitting a deer, being struck by a falling tree, or experiencing hail damage is low, it can make sense to drop comprehensive coverage and save the difference toward a down payment on your next vehicle.
Shop Safer Cars
With so many new safety developments over the last decade, today's cars provide more protection against collisions than ever before. These protections, like backup cameras, lane control, and automatic braking can decrease insurance premiums by reducing the likelihood that you'll be involved in an accident.
If you're in the market for a new vehicle, consider expanding your search to include vehicles with a wide array of modern safety features. Often, these vehicles are actually cheaper to insure than older models, even if the older models cost less. Not only can investing in a safer vehicle protect you and your loved ones from injury, but it can also save you money.
For more information on how you can save money, visit a company like GMI Get Me Insured.
