Buying a car is perhaps the most expensive thing in life, next to buying a home. The recurring costs of owning, operating and maintaining the vehicle also take a huge bite out of your paycheck. Yet, you need not let your driving expenses drive you to the poorhouse. Keep reading for eleven ideas you can use to keep your car insurance premiums as low as they can go:
1. Drive your car as long as you can. Eventually, you will get to a point where the financing is done and paid off, and the market value of the vehicle is lower. At this time, you can consider reducing or even cancelling your collision coverage, which is what protects costs of damage to your vehicle itself.
2. If you have more than one insurance policy, car or otherwise, try to get all your coverage from one firm or business. Bundling discounts are an industry standard and can range as high as 10%.
3. Boost the amount of your deductible. This is how much money you have to pay out-of-pocket before the insurance company would kick in on any claim. The higher it is, the less they have to spend, so the premiums reflect their lower level of risk. Just make sure your budget and emergency savings can withstand both the frequency and amount of the deductible you are considering switching to.