Helpful Tips to Lower the Amount You Pay for Auto Insurance Premiums
As a driver, you are required to have at least liability-only coverage on your vehicle. You cannot legally drive anywhere in the U.S. without maintaining a policy on your vehicle.
However, you may not have the most generous of budgets for this coverage. Here are several tips you can use to pay less each month for your auto insurance premium.
Take Out the Minimum Coverage
If you drive an old beater of a car or do not have a lien on your vehicle, you have the option of taking out liability-only auto insurance. Liability only will pay for damages to property and other vehicles in wrecks that you cause. It will not pay for your own damages or loss of property, however.
Still, this barebones coverage can cost you a fraction of the price of what full coverage auto insurance would cost you and fulfills the minimal legal requirement for coverage. Contact an auto insurance agency to learn more.
Bundle Your Policy
You can also pay less for your auto insurance premiums if you bundle several policies together. For example, if you bundle your renter's or homeowner's insurance with your auto insurance, you may be given a significant discount on your policy. Your savings can be upwards of 27 percent off what you would normally pay.
Likewise, if you cover more than one car on a policy, you may be given a discount on your auto insurance. Many insurers provide discounts for multiple car policies. You get the coverage you need for all of your vehicles and pay a discounted premium for the policy.
Buy an Older Car
Finally, you can save money on your auto insurance if you buy an older vehicle. Insurers consider newer vehicles to be more of a liability to insure. They cost more money to repair if they are damaged in a wreck or replaced if they are stolen.
You can get the lowest premium if you buy a used four-door sedan or an older two-door coupe, for example. Your car will not cost as much for repairs or replacing.
These tips can help you save money on premiums that you pay for your auto insurance. You can take out liability-only coverage or bundle your policies. You can also save money by insuring an older vehicle. To learn more about ways to save, contact an auto insurance agency near you. They may have more tips to offer.