5 Hidden Ways to Save Money on your Car Insurance
- Improve Your Credit Score
A lot of people don’t like insurance companies using credit scores as one of the factors in determining what you pay for car insurance. California, Hawaii, and Massachusetts don’t take credit scores into account when figuring premiums, but for the rest of us, we have to play by the rules we’re given.
The good news is that each time you move up a tier, you can save hundreds of dollars a year.
- Get Yourself a Bundle
Buying insurance for your car and your home can lead to big savings, and you don’t even have to own a house. On average, bundling coverages saves you 8% on car insurance, although homeowners see the biggest benefits, condo owners and renters get in on the action, too.
- Keep Yourself Covered
This one is easy: The longer you are insured, the lower your rates will be. It only takes six months of coverage to see savings of approximately 8%.
- Aim to Pay upfront
If you can pay for your entire term of coverage upfront, it will pay off down the line. Payment in full, rather than in installments, can save you 12%. Think of it as paying $9 less per month. Doing business digitally is a bonus, too.
- Track Your Driving with Telematics
If you’re OK with using an app or a small device that plugs in under your dashboard to track your driving habits, it could pay off with savings. It’s called telematics, where your speed, mileage, and total driving time are tracked and used as part of the formula that determines your insurance premium.
Nearly every state shows some benefit of using telematics. In some states, choosing this type of usage-based insurance and then being a safe driver can save you more than 3%.