December 14, 2015
9 Easy Ways You Can Save on Car Insurance
Want a better car insurance rate? Of course you do. Lucky for you, there are some simple things you can do to get a better rate for your car insurance in Oklahoma. Read on to see how to save money on your car insurance with your used car from The KEY!
Raise Your Deductible
One of the simplest ways to pay less for your insurance each month is to raise your deductible. Your insurance deductible is the amount that is deducted from your insurance payout in the event of an accident. If you raise your deductible, you will be responsible for paying a larger amount. That might seem like a bad idea, but it’s a solid strategy if you don’t drive much or have an older car.
Insurance companies base your coverage in part on how much you drive. The more you drive, the more you’re at risk of being in an accident. Therefore, by driving less you lower your risk – and your insurance rate. If you can reduce the miles you drive each year, you can earn a lower rate. Try taking public transportation when you can, carpooling with other drivers, or riding a bicycle or walking for short trips.
Park In a Garage
Do you park on the street or in an uncovered driveway? You might be paying more than you need to. Parking your car in a secure garage can lower your insurance payments. In a garage your car is at less risk for damage, theft, and vandalism. Your insurance company will reward you for cleaning out your garage and parking there instead of on the street.
Keep a Clean Driving History
Driving safely doesn’t just benefit you. It’s also healthy for your wallet. Safe drivers get significant insurance discounts and benefits. Most insurance companies look at your past 3 to 5 years of driving history when calculating your rate. Take steps to be a safer driver like speeding less, using your turn signals, and not talking on the phone or texting while you drive. It will pay off!
Choose a Car with a Good Safety Rating
Insurance rates change based on the car as well as the driver. A car with a higher crash test rating will earn you a lower insurance rate. More crash safety reduces your risk of injury in an accident. Remember bigger cars are not always safer – always look at published safety data and crash test ratings. You can check the Insurance Institute for Highway Safety’s website for information about your car. Most car review sites and magazines also publish safety data. If you’re shopping for a new car, you can also check the SaferCar.gov website for new cars with high safety ratings.
Adjust Your Coverage Over Time
When you buy a car with a loan or lease option, you will usually have to put collision and comprehensive coverage on it. This is to protect the lender’s investment if the car is totaled. If you keep your car for a long time, though, this coverage may be unnecessary. As your car gets older, its value decreases. Eventually it will become low enough that it’s cheaper for the insurer to total it than repair it. The general rule is you shouldn’t pay more than 10% of your car’s value for collision or comprehensive coverage. You can check your car’s approximate value on sites like Edmunds or KBB. Compare that value to your rate to see if it makes sense for you to drop comprehensive coverage.
Shop Around for Better Rates
Insurance companies generally don’t adjust your rates each year. If you have gone through any changes in your life like moving, getting married, or changing jobs, you could earn a lower rate. It pays to shop around for lower insurance rates every year or two, especially if you have made lifestyle changes. You never know what might earn you a little extra money off your monthly bill.
Ask Your Insurer for Discounts
Most insurance companies offer extra discounts as incentives to customers. These discounts can vary from company to company, but some of the common ones are:
- Student Discounts
- Safe Driving Discounts
- Group Membership Discounts
- Retiree Discounts
Ask your insurance company if you are eligible for any discounts on your rate. If you aren’t eligible, ask what you would need to do to become eligible.
Improve Your Credit Score
Insurance rates are based in part on your credit score. If you work to pay off delinquent debt and repair your credit, you could see a lower insurance rate. Take a look at some of our past posts about improving your credit score for more information.
At The KEY in Oklahoma City, we believe in helping our customers find the best deals. That’s why we offer a variety of cars with high safety scores and safety equipment. We also have free credit and payment counseling to help you manage your finances. Call (405) 526-7010 today to learn more or visit us on Facebook or Twitter for more helpful articles and tips!