Automotive Finances & Money Insurance

Here’s How You Can Customize Your Car Insurance Needs to Save Money

save money on motor insurance

The variance of car insurance payments between two drivers could be a difference of hundreds of dollars a year  – based just on the model of the vehicle. This information not only dictates the price of your coverage, but also many of the data points of your life. The average monthly cost of motor insurance is about $100. If I knew then, what I know now, I would have saved a lot of money.

Vehicle Model Determines Motor Insurance Rates

Car insurance rates are predicated on specific vehicle model types. Or specifically, vehicle models that are more prone to crashes, theft, breakdown, and other data. For instance, sports cars are usually driven faster than other kinds of cars. So, your sports car will have a higher coverage rate than say, my family sedan. If you drive a rare or expensive car, then it will cost more money to source rare and expensive parts when necessary. Accordingly, coverage rates will be higher.

Coverage rates are customized according to model type just as much as other factors. If not more. I say, don’t let your car insurer cover you based on vehicle model data generalizations. Consider these money-saving tips that I learned about the hard way.

1. Compare Insurance Rates Before Purchase

If you’re in the market for a new or used car, or just changing your existing coverage, do some research. Find out the insurance costs for the car you’re looking at before purchasing. Numerous insurers offer coverage discounts for vehicles statistically proven to be safer than other models or less prone to theft.

2. Take Advantage of Every Insurance Coverage Discount

Car insurance companies offer a wide array of discounts based on promoting low-risk lifestyles. Such discounts are modest, but add up if you take advantage of as many as possible. You can get car insurance discounts for taking a safe driver training course and maintaining low-mileage, or equipping your car with anti-theft and safety modifications, among other things. Ask your insurer about such discounts, as some don’t fully publicize such offers.

3. Make Deductibles Work For You

It may sound counter-intuitive but having a high enough deductible can reduce your overall premium. Of course, “high enough,” is a financially relative term for each person. However, you will pay less out-of-pocket per claim as your premium is reduced proportionately to deductible amount. A $500 or $1,000 deductible could mean saving anywhere from 10% to 40%, or more, on your premium. This is definitely a long-term payoff financial hack. Consider this option only if you can afford it.

4. Pay Insurance By The Mile

Some insurers allow you to pay for coverage based on how much you drive in a predetermined period. You may be able to save up to three cents per mile relative to average coverage costs. Also, why pay average insurance costs if you don’t drive very much?

5. Talk To Your Car Insurer

Inquire about potential discounts. Ask how your coverage can be modified based on your actual driving lifestyle. Always compare insurance costs for vehicle models if you are buying a new car. Or just changing insurers.

If there is one thing I have learned after years of paying for car insurance, it’s that no one will customize my coverage needs like myself.

How have you saved on car insurance? Share with us in the comments below!

Read More

Why is it important to compare the car insurance quotes?
How Knowing My Car Insurance Coverage Saved Me $250

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Allen Francis

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