Buckle up friends because it’s time to talk about the cost of car insurance car insurance protects you your passengers aims your investment your car and in most states it’s require but if your monthly premiums are putting a dent in your wallet and you’re looking to put a little more budge in your budget there are ways to lower your monthly car insurance payments hi there i’m i’m in my throat and an auto insurance or com will tell you everything that you need to know about lowering your car insurance payments without sacrificing coverage you ready to start saving well here’s how you do it number one raise your deductible your auto insurance deductible is the amount of money you ago
Read to pay before insurance contributes to covered damages the higher your deductible the lower your insurance premium so with a higher deductible you’ll need to pay more at a pocket in the event of an accident most car insurance policies include deductibles on collision and comprehensive coverage only collision coverage pays for your property damage from an accident regardless of fault comprehensive coverage pays for damage from theft whether vandalism and wild animals so really any event aside from a collision typically collision coverage cost more than comprehensive coverage so your collision deductible might affect your insurance premium more than your comprehensive deductible
You can choose different deductibles for a collision and comprehensive and that’s also known as a split deductible if you live in an area with a high risk of natural disasters you may consider a lower deductible for your comprehensive insurance for example however if you’re a safe driver and you have never cause an accident choosing a higher deductible for collision coverage will keep your auto insurance premium loud when you sign up for auto insurance your pick the amount of your deductible from several options it can range from zero dollars up to two thousand dollars with the average deductible for collision coverage being around five hundred dollars the most important rule when choosing a deductible is to select an amount that you feel
Oh comfortable paying within twenty four hours so run the numbers on your auto insurance deductibles with your car insurance provider if your savings account has a good amount of cushion a higher deductibles might be a good way to save money on your insurance premium number two bundle your home insurance and auto insurance many companies provide discounts on your auto insurance premium if you bundle your auto insurance policy with another policy from the same provider like homeowners insurance or rental insurance bundling is also known as a multi policy does can’t talk to your insurance agent about bundling you might be surprised at how much you can save
Number three drop coverages one way to reduce your car insurance rates is to drop unnecessary coverages there’s six basic types of auto insurance bodily injury property damage medical payments or personal injury protection uninsured or underinsured motorists collision and comprehensive depending on where you live some of these coverages are required however no states require collision or comprehensive insurance in most cases it pays to purchase them however reducing coverage to the minimum on an older car might lower your car insurance costs
Insurance payments for collision and comprehensive coverage are limited to the cars actual cash value if you total an older car in a covered collision the maximum mound you’re unsure will pay you to replace it is the cars depreciated value which could be lower than the cost of your premium a rule of thumb is that if your car is worth less than ten times the premium purchasing collision or comprehensive coverage might not be cost effective also take a look at your policy to see the contains any features that you don’t need or you can live without like rental car insurance or roadside assistance eliminate them to save some money
Number four good car insurance discounts one of the easiest ways to reduce car insurance costs is to take advantage of auto insurance discounts these discounts differ between companies but some of the most common include installing anti theft device is having safety features like airbags daytime running lights an anti lock brakes taking a defensive driving course avoiding accidents and traffic violations being a longtime customer ensuring more than one car some auto insurance providers offer discounts based on affiliation such as if you’re a senior driver or you’re in the military parents of teen drivers be a look out for discounts for your teens like being a good student or taking a driver’s training course you can also save money by switching to pay as you drive programs if you plan on driving fewer miles this might be a good option for you number five lower limits
And insurance limit is the maximum amount your insurance company more pay for a covered claim each type of coverage you purchase with your policy has a limit liability coverage limits are determined by state law and comprehensive and collision coverage max out at the cash value of your car at the time of your accident lowering your limits will decrease your monthly premium because you’ll be on the hook for more money in the event of an accident once you reach your coverage limit you will pay out of pocket for additional expenses so think carefully about how much you will be able to pay in an emergency before you to crease your coverage limits
Hopefully these steps will help you get the insurance coverage you need without stressing about your budget to learn more about saving money on your car insurance however to the budget have and auto insurance dot com slash budget it’s linked in the description and you’ll find lots of information about buying an budgeting for car insurance also be and like and subscribe to our channel we applaud imposed new videos every week
