How to Save Money On Car Insurance in 2022

Auto insurance is one of the unavoidable aspects of car ownership. Most states in the U.S. require every driver to have liability insurance to go on the road, but that doesn’t mean you can’t find ways to save money on it.

There are many ways to save on car insurance. For instance, you can shop car insurance each time it expires to make sure you’re getting the best rates. Before we dive deeper into these strategies, let’s look at how these premiums are calculated in the first place.

How Insurance Premiums are Calculated

Here are some factors car insurance companies use to determine how much a car owner pays. Some of those factors are:

  • The make and model of your car. The more expensive your car is to repair, the more you’ll pay for insurance.
  • Your driving record. If you’ve had several driving violations in the past, your premiums will be higher than someone who has never violated any laws.
  • Your age and gender. Statistically, young and male drivers are more likely to get into accidents than older and female drivers.

How To Find The Cheapest Car Insurance Policy

So, how can you save money on car insurance in 2022? It all comes down to finding the cheapest policy for your needs. Here are a few tips.

Understand What the State’s Minimum Is

Every state has a list of the minimum requirements that every car insurance policy must meet. Typically, the minimum requirement covers the type of insurance and the amount of coverage. For example, in California, the minimum requirement for liability insurance is $15,000 per person and $30,000 per accident.

By understanding your state’s required minimum coverage is, you can avoid getting coverage that you won’t end up using.

Shop Around

Next, collect quotes from different insurers. Don’t just settle for the first policy you find. Compare rates from various companies. Rates vary widely, so you could save a lot of money by getting multiple quotes.

Bundle Your Coverage

You may also be able to get a better deal by bundling your home, life, and car insurance policies all through the same company. Insurance companies often offer discounts if you combine multiple policies through them, rather than just getting car insurance on its own. So, contact your insurance provider to find out what discounts are available to you.

Ask about Safe Driver Discounts

Many insurance companies offer discounts to drivers who have a long history of being safe behind the wheel. If you haven’t been involved in accidents or had driving violations in, say, the past five years, you may be eligible for a safe driver discount.

Increase Your Deductible

Another way to lower your premiums is by increasing your deductible. A higher deductible means that you’ll have to pay more out of pocket if your car needs repair, but it could save you a significant amount on your monthly payments.

Lower Your Risk Profile

If you’ve had three accidents in the past five years, your premiums will be higher than someone who has never been involved in an accident.

Taking some simple steps can help you save money on car insurance:

  • Drive carefully. Take extra care to avoid driving violations like speeding tickets and running red lights.
  • Don’t drink and drive. Limit your alcohol intake before driving. Having a DUI on your record can make your premiums skyrocket.
  • Get regular checkups and tune-ups on your car. These procedures can help reduce the risk of an accident.
  • Take a safe driving course. Many insurance companies will give you a discount if you complete a course on safe driving or defensive driving.

Maintain a Good Credit Record

As mentioned earlier, one of the factors that insurance companies use to calculate premiums is your credit score. A good credit score means you’re less likely to default on your payments, so insurance companies will offer you lower premiums.

Here are a few tips for maintaining  a good credit score:

  • Keep your balances low on existing accounts.
  • Don’t apply for multiple credit cards at once.
  • Pay off your bills on time.
  • Pay your bills in full, if possible.

Reduce Your Coverage

If you don’t drive your car very often, you may be able to save money on car insurance by reducing your coverage. For example, if you just use your car to go back and forth to work, you might not need comprehensive or collision coverage. You can save anywhere from 10% to 15% of your premium by reducing your coverage.

There are three main types of car insurance:

  • Liability insurance covers injuries to other people and damage to their property if you are at fault in an accident.
  • Comprehensive insurance covers damage to your car that is not caused by a collision, such as theft or a natural disaster.
  • Collision insurance covers damage to your car that is caused by a collision with another car or object. Collision insurance is usually the most expensive kind of car insurance.

Now, you don’t need to buy comprehensive or collision insurance if you don’t want it. However, if you choose to go without it, you will be responsible for any damage to your car, even if it’s just a simple fender bender.

Pay Your Auto Insurance Yearly

Finally, you can save on car insurance by paying your premiums in full for the year rather than monthly. Many insurance companies charge a fee for monthly payments, so you can save money by paying annually.

Takeaway: It’s Not Impossible to Save Money on Car Insurance

There are many ways to save money on car insurance in 2022. By comparing rates, bundling your policies, increasing your deductible, and maintaining a good credit score, you can lower your insurance expenses in the coming years.

Leave a Reply

Your email address will not be published. Required fields are marked *