Finance

How to Cut Your Car Insurance Costs

By The Gopher - September 21, 2019
How to Cut Your Car Insurance Costs
Credits: expatica.com

Car insurance can be really expensive, especially for those on a low-income. Some have to compromise necessities such as appropriate nutrition in order to continue to drive.

Thankfully, the cost of car insurance can be significantly reduced in a couple of ways. All you need to know before paying too much again for your auto insurance is what kind of savings exist.

If you are on a low income and want more affordable car insurance, see below some potential options. Hopefully, you may find a solution that suits your needs.

Common Discounts

There are common discounts from which all drivers can benefit from. Use the following discounts to reduce the price of your current auto insurance cost. They are available to everyone and it’s worth your time to learn what kind of discounts there are.

However, check with your insurance company/agent to make sure that these discounts are available for you.

Good Student Discount

This type of discount implies that a responsible student will also be a responsible driver. You can qualify for a good student discount if you are a high school or a college student, who earns good grades.

The age varies from one insurance company to another, but according to many, you should be between 16 and 24 years old. You only need a transcript or a report card to apply if you have a sufficient GPA.

Safe Driver Discount

A safe driver discount is a motivation and a reward for continuously driving safely. According to Value Penguin, it is the most significant discount. If you can go for many years without any incidents, accidents or traffic tickets, it’s normal for insurance companies to provide a discount.

In addition, there are certain insurance companies that offer the largest discounts by enabling a driver to use telematics, to monitor your driving patterns through a smartphone app or through a device that’s connected to your car.

Senior Citizen or Low-Mileage Discount

You can reduce the cost of your car insurance if you’re a senior citizen or if you don’t use your car that often. According to The Zebra, you are considered a low-mileage driver if you drive less than 7,500 miles per year.

For insurance companies, it’s cheaper to insure seniors because, in addition to being their long-term customers, they are also less likely to drive for more than 7,000 miles a year.

Multi-Policy Discount

Customers who bundle their insurance policies in the same insurance company are able to get a discount. You will save money if you have two or more different forms of insurance policies, such as for example auto and renter’s insurance or auto and homeowner’s insurance. Plus, that discount will be included in all of your insurances.

Government Auto Insurance

Government Auto Insurance can be provided to families with low income, and that is something only a few drivers probably know. You should apply for government auto insurance if you find it hard to cover your regular car insurance expenses. It is also known as a state-sponsored auto insurance program.

Government auto insurance will help you cover insurance costs but for less money. Three states already provide low-income drivers with self-insurance coverage: California, New York, and Hawaii. Each policy offers a different kind of insurance coverage, but each provides the required insurance in order to drive legally.

However, each insurance has a different price and qualification requirements. See what each government promises and check whether your salary level fits the requirements. If you meet the requirements, your insurance cost will be significantly lower or you’ll gain access to special policies for low-income drivers.

How to Apply for a Discount

People with low-income should take advantage of the discount to lower their insurance costs. Since there are already all these ways to save, you should enjoy the benefits. Although, It ‘s important to do some homework first.

For instance, you must review the relevant laws and regulations of the state where you want to apply for government-sponsored insurance. Also, look for certain incentives that may exist for families and individuals with low income.

Every location comes with its own rules, that’s why doing your homework is important to find a deal that suits your needs. Compare prices between different companies as well as the diversity of their offerings.

Something that will most certainly cut your car insurance costs is shopping for car insurance at least once a year. Even if you don’t plan on changing your insurance company, buying gives an opportunity for decreased rates.