While there are likely a few monthly bills that you have to pay a certain amount for, some of your expenses can be shifted or reduced simply by making some smart choices. One area that there may be more flexibility than you originally thought is with your car insurance. Monthly premiums are determined through a variety of factors. And if you’re able to reduce or increase some of those factors, you may be able to see a big difference in the amount you’re paying for your car insurance. To show you how to make this possible with your monthly budget, here are three ways you can save money on your monthly car insurance costs.
Be A Good Driver
Car insurance is all about trying to mitigate risk. Your insurance carrier wants to make the most amount of money by paying out the least amount of money on claims. So to help reduce your insurance costs, you need to prove to your carrier that you’re a good risk, meaning that you won’t be causing them too many problems that require them to pay money. One way to do this, according to Barbara Marquand, a contributor to NerdWallet.com, is to just be a good driver. If you can prove that you’re a good, safe driver through having no tickets and having fewer insurance claims, your rates will decrease and you’ll end up paying less overall to be covered by your car insurance carrier.
Review Your Deductible
One factor that may be creating a higher monthly payment for you is the amount you set as your deductible. If your deductible is higher, meaning that you’re willing to pay more money out of pocket before the insurance starts picking up the bill, you can save a lot of money on your monthly insurance costs. In fact, according to Jon Linkov, a contributor to Consumer Reports, if you increase your deductible from $200 to $500, you can be saving anywhere between 15 and 30 percent on your monthly insurance costs. So if you are willing to live with a little more risk, you could be saving yourself a lot of money in the long run.
Drive A Safer Car
In addition to your driving record, the type of car you’re insuring can also have a big impact on what you’re charged by the insurance carrier each month. According to Rob Berger, a contributor to Forbes.com, smaller, faster cars are more expensive to insure as opposed to bigger, slower, safer cars. So if you’re currently driving a car that could be considered something of a hot rod, consider switching to something more conservative if you’re wanting to save money.
For those hoping to save money on their monthly car insurance premium, consider using the tips mentioned above to help you do just that.