Still Working from Home? 5 Strategies to Cut Your Car Insurance
It’s a shame to be spending so much on car insurance when, in most parts of the country, you still can’t really use your car to get out and do much. The average annual cost of car insurance in 2020 is between $1,500 to $1,900, and that’s quite a bit of cash to spend for something you’ll rarely use.
However, there ways that you can cut your car insurance without losing coverage. Finding affordable auto insurance is easier than ever as companies fight to keep their customers amid the financial crisis. Not sure how to lower your car insurance? Here are five strategies to help you save.
How to Get Cheap Car Insurance
1. Ask for a Higher Deductible
If you’re not going to be driving your car to and from work on the freeway and aren’t likely to use it for long road trips anytime soon then there’s really no reason why you need a low deductible. The chances of you having to pay for massive damages are pretty low if you’re working from home, meaning that you can call and ask for a higher deductible in exchange for a lower monthly premium. Some studies suggest that by opting for a higher deductible, you can reduce your auto insurance by 15 or even up to 30%.
2. Bundle Car & Home Insurance
If you have home insurance, it might be worth calling your provider to ask if they’ll offer you a bundle price for car and home insurance together. Or, if you have more than one car in the family, call to ask about family discounts for a group auto insurance rate. While this is a less effective way of cutting your car insurance costs, it’s a small step you can take towards reducing your monthly bills in general.
3. Ask About a Low Mileage Discount
Working from home and reducing your encounters with the outside world ultimately means that you’re definitely not racking up the miles on your car. Most auto insurance companies offer low mileage discounts that allow you to pay less since you also drive less. Sometimes, this requires you to install a device on your car to track mileage, or simply report mileage to your insurance provider.
4. Take a Defensive Driving Class
As you stay home and stay safe, you’re likely noticing that you’ve got quite a bit more time on your hands than before. Instead of learning to bake bread or learning new Tik Tok dances, why not take a defensive driving class that’ll allow you to reduce your auto insurance premium? Not only do many insurance companies offer discounts for drivers who have taken the course, but it’s also a great way to improve your standing as a driver; this can, in turn, reduce your premium. Be sure to call your provider beforehand to double-check and also to ensure that the course you want to take is valid.
5. Simply Call and Ask About a Discount
The best way to cut your car insurance? Simply call and ask about discounts. This usually works best if you mention that you’re thinking of switching to a competitor due to better pricing or perks, but it’ll also work if you’re honest about your situation. During the pandemic, many companies are offering lenient grace periods and reducing interest rates and premiums to those who are struggling financially.
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