If you own a vehicle, which 95 percent of American's do, then you need to have car insurance. In 2014, the average cost of car insurance per year was $907.38, according to a study by Quadrant Information Services. Add in the cost of the vehicle, maintenance and gas, and traveling by car is just about the most expensive way to get around.
Car insurance is required by law, so unfortunately it's not one of those things you can just go without (and honestly, going uninsured is never a good idea). There are ways you can save money on your car insurance right now that may be easier than you think. We all know the more common ways, such as having a good driving record or purchasing only the amount of coverage that you need, but what about the less common ways? Here, we're sharing 4 practical, yet often missed, ways to save on car insurance.
Become a One-Car Family
If you don't absolutely need two cars, consider becoming a one-car family. Most likely, your parents were a one-car family at some point and I can almost guarantee that your grandparents were. Sure, times have changed, but having only one vehicle drastically reduces the amount you pay in car insurance. You'll also save on gas, repairs and maintenance of that second vehicle.
Switch Insurance Companies
We see ads all the time on how switching car insurance companies can save you money. While that can be true, make sure to read between the lines and know what you're signing up for. Is your coverage the same? Why is one company able to charge less? Are there any hidden fees? These are all questions you'll want to ask the new company you're inquiring with. Also, before switching, call your current provider and let them know you found a company that offers a less expensive plan. Your current provider may be able to match that in order to keep you as a customer.
Did you know that most insurance companies offer a discount to motorists that drive less than average? Give your provider a call and ask them if they will reduce your premiums if you, in turn, reduce your driving. Instead, you can carpool, take the bus, walk or ride your bike. Also, plan you errands accordingly. Instead of going to the grocery store one day, Costco another and the bank another day, try to accomplish all of your errands in one fell swoop, choosing the route with the least amount of miles.
Bonus: Driving less also decreases your chances of being in a car accident. Car accidents automatically increase your insurance premiums.
Drive a Car That is Less Expensive to Insure
Typically, small cars that are able to zip in and out of traffic are the most expensive ones to insure. And, of course, the more expensive your vehicle is, the more it's going to cost you in insurance. You can avoid paying high insurance rates by driving a car that is cheaper to insure. According to Autoblog.com, the least expensive vehicles to insure include the Jeep Wrangler Sport and the Honda Odyssey LX.
What are your tips for saving money on car insurance? Share in the comments!