Here are a few points that will help lower your car insurance expenditures.
- Realize that you can always switch insurance companies – Most people think they are locked into their car insurance policy until renewal time. That’s 100% false. You can cancel any car insurance policy at any time, and get a prorated refund. This encourages shopping around (more on this later).
- Drive less than 35 miles per day – We’ve found that many car insurance companies don’t ask how much you drive (they’ll leave it up to you to ask them.) Make sure you bring this up, and ask if there are discounts if you don’t drive very far (like less than 35 miles a day).
- Your credit may matter, also – If you have good credit, it could lower your premium. Ask about it if your credit score is 650+.
- Ask about other discounts, like occupation and hybrid cars – Some companies offer discounts to “low risk” occupations (like engineer, teachers, scientists, etc.) Ask if your occupation qualifies. Some companies also offer discounts for electric cars / hybrids.
- Compare, compare, compare – We cannot stress this enough. Remember earlier where we said you can get out of your current policy? That makes shopping around for the best rates very easy. The savings to be had by doing a little comparison shopping can be huge – often hundreds, if not thousands of dollars!