After COVID-19 caused record job loss and caused many to see drastic drops in their incomes, it became rather obvious that now is the time to start saving up for a rainy day.
Where can you begin to save? Many choose to cut their entertainment expenses. And while that’s a great way to free up money in your budget, we’ll discuss how to cut your car insurance costs instead.
Steps To Lower Your Auto Insurance Costs
Since you can’t cut car insurance costs altogether, you’ll need to shave dollars and cents off your premium. These steps will help you do just that:
1. Get in touch with your insurance agent.
Start at the source. Contact your current insurance company and tell them you want to reduce your premium. Before you call, have your policy handy, so you can look over it when talking to the agent.
Ask for any discounts for your affiliation with groups, the military, etc. Your agent should be able to list moves you can make to lower your premium, such as increasing your deductible or cutting unnecessary coverage. For example, if you cut roadside assistance, rental car coverage, and comprehensive or collision coverage, you could see significant savings.
Before making any changes, check with your agent first to ensure you keep what’s needed for your location. And before you hang up, get a quote for what your new payment would be.
2. Shop around.
With your new potential quote from your current auto insurance provider in hand, now’s the time to see what competitors have to offer. You can do this online rather quickly without having to call each company separately.
3. Consider usage-based insurance.
Are you driving a lot less due to COVID-19? Does your car spend more time parked than it does on the road? If so, usage-based insurance could save you money if you drive less than 10,000 miles per year.
Many larger companies now offer this type of car insurance for people looking to save. One example is Progressive’s Snapshot program. Keep in mind that your driving habits may be tracked if you choose this option, so the insurance company knows that you’re not driving too frequently.
4. Take a driving course.
Insurance companies reward drivers for good behavior. Besides avoiding accidents and tickets, another way to look good in your insurance company’s eyes is to take a defensive driving course.
Such courses are rather simple, and many companies offer discounts if you complete one. If this sounds like something worth trying, call your agent before enrolling in a course. Confirm that they offer defensive driving discounts. Then ask them if they have a list of approved courses you can use. If not, you could waste your time and money on a course that the company does not recognize.
Section 8 Assist
