Looking for affordable car insurance? Follow these 5 steps now

Car insurance can protect you against financial loss in the event of an accident. Approximately 87% of drivers have some type of insurance coverage, according to the Insurance Research Council. A study by AAA estimates that the average driver spends $1,202 per year on car insurance.

Shopping for car insurance quotes online is one option for finding affordable coverage when you need to save money. This could be important for your financial goals if the coronavirus pandemic affects your household income.

1. Look for the best car insurance company
2. Combine home insurance policies with car insurance
3. Consider safe driving courses or certifications
4. Call your insurance company to find other ways to save
5. Choose carefully when looking for affordable car insurance

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1. Look for the best car insurance company

What you pay for car insurance is largely based on your driving history, from a clean driving record to traffic violations and collisions. Your rates could increase if you were in an accident that required you to file an auto insurance claim. Your car insurance premium may also increase if you have points on your license for driving violations. In this case, you might consider no-fault insurance designed for people with a poor driving record.

“This type of insurance will only cover the minimum required by the state, but it is useful in helping repair a person’s record in the eyes of other insurance companies,” said Josh Simpson, a financial advisor with Lake Advisory Group in Lady Lake, Florida. .

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2. Combine home insurance policies with car insurance

You can get a discount on car insurance if you combine multiple policies into one. Insurance companies may offer multi-policy discounts when you have more than one type of insurance policy, such as home and auto, under the same umbrella.

If you own a home, you may be able to get car insurance through the same insurance company that issued your home policy. Even if you don’t own a home, you can still reduce your car insurance costs by adding another type of policy. For example, you might bundle your car insurance coverage with renter’s insurance or life insurance.

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3. Consider safe driving courses or certifications

Many car insurance companies offer discounts for safe driving or defensive driving when you maintain a clean driving record. The insurance discount you can claim may depend on the insurer and the terms of your car insurance policy, but it’s possible to save 5% to 20% this way.

What you should consider is the cost of safe driving or defensive driving certification. If you can get certified for $100, for example, and it saves you $250 a year on your car insurance premium, then it might be worth it.

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4. Call your insurance company to find other ways to save

The most effective way to save money on car insurance may be to simply ask your insurance company what options are available. For example, you may qualify for a safe driver discount if you’ve had your policy for a while and have never needed to file an auto insurance claim.

Discounts may also be available if you have more than one vehicle on your auto insurance policy or if you have a young driver or student in your household. Your car insurance company may also reduce your insurance rates if your car is equipped with anti-lock brakes and other safety features.

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5. Choose carefully when looking for affordable car insurance

Paying less for car insurance means saving money, but consider the trade-offs this may involve. For example, opting for just liability insurance coverage instead of comprehensive coverage or full coverage could leave you paying for repairs or other expenses out of pocket if you are at fault in an accident. Instead of giving up full car insurance coverage to save money, you may be better off increasing your deductible rather than reducing your premium costs.

Consider the car insurance company’s reputation and price. “Paying a few extra dollars a month for a better company will be worth it if you ever need to file a claim,” Simpson said.

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