3 Ways to Get Your Auto Insurance Costs Under Control

As a driver, auto insurance is an expense that you can't escape, but you can control what you pay for auto insurance in a variety of different ways.

Way #1: Go for a Bigger Deductible

A low deductible may sound great, but it can really cost you. Going for a low deductible, such as $100 or $200, is really going to raise your premium up. You can save a significant amount of money by simply raising your deductible up to around $500.

This is one of the biggest cost-savings insurance measures you can implements. Of course, you need to make sure that you have at least the amount of your deductible in your savings, so if anything goes wrong, you can afford to pay your deductible.

Since you only have to pay your deductible if you file a claim, it makes sense to raise your deductible so that you can save money on your insurance costs.

Way #2: Reconsider Your Coverage

As you drive your car, and your car ages, you need to reconsider the coverage you have on your car.

For example, when you are still paying off your car, it makes sense to carry gap insurance, which if your car is ever totaled, will pay the difference between the value of your car and your loan, so that you aren't out with a loan for a car that you no longer have. However, once your car is paid off, you should drop this coverage as it serves no purpose.

If your car is really getting up there in age, and the value of your car has dropped, you may want to get rid of comprehensive coverage and drop down to basic coverage, as the cost to carry full insurance just isn't worth it when the value of your vehicle is too low.

Way #3: Shop Around

It can be easy to feel like you should be loyal to your insurance company, and although some insurance companies offer loyalty discounts, it still pays to shop around. At least once a year, get a quote from two to three other insurance companies and see how the premiums and coverages differ.

You may find that another insurance provider is able to provide you with similar or better coverage at a more affordable rate, or you may find out that you have the best possible deal on your insurance already. You will not know if you don't shop around.

If you want to keep your car insurance costs under control, you should go for a higher deductible, reexamine the coverage you are carrying each year, and show around and get quotes at least once a year. Being proactive about your insurance coverage will help you keep your premium rate within an affordable range. 

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