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Tuesday, October 6, 2020

3 Easy Ways to Save on Car Insurance

I decided that I want to look into getting a car when I am able to swing it financially. So this peice sent in by a reader on how to lower the cost of car insurance is something that interests me- hopefully it'll be useful to you too!



Car insurance can get expensive and make up a large portion of your transportation budget. However, it isn’t set in stone, and there are tons of things that you can do to reduce your premiums. In some cases, you may have advantages you weren’t even aware of. You can also make small adjustments that could make a big difference in how much you end up paying. Here are some easy ways to save money on car insurance.

Join the AARP

If you’re over 50 and haven’t joined the AARP, you should consider doing it right now. Not only will you be able to save on things like car insurance, but you’ll also get free financial advice, dental insurance, and even be able to save money on hearing aids, among other things.

When it comes to insurance, you have providers like The Hartford that offer an AARP home and auto insurance bundle. By taking an AARP home and auto insurance bundle, you’ll be able to save 5% on your car insurance premiums and 20% on your home insurance. Not only that, but they will also give you an additional discount for three years if you complete the AARP’s Smart Driver course. Joining is something you should consider, and it’s very reasonable too.

Get the Right Car

Possibly the one thing that will make the biggest difference in how much you will pay besides your record is the vehicle. Insuring a 2018 Ford GT will cost you much more to insure than a Toyota Sienna; there is more than the type and model that needs to be considered.

One of the things people don’t pay enough attention to is security ratings. In their calculations, insurance companies will look at cars that are the most commonly implicated in car accidents, and how many of them are fatal. If you own a vehicle that is not only not involved often but has very little casualties associated with it, you have a winner. Here is a list of cars with the highest safety ratings. Some of the models that are notoriously cheap to insure include the Toyota Rav 4, Ford Escape, and most models from Subaru.

Reconsider Collision Coverage

Some people automatically assume that collision coverage should be included in any policy, but there are cases when it makes little sense. For instance, if you have an older car with very little residual value, there’s really no use in taking collision coverage. For one, there is a very high chance that a collision will end up in your vehicle being considered a total loss due to its low value. Second, there’s no point in paying more for your deductible than the value of your car. Instead, save that money towards a new vehicle.

If you want to reduce your insurance costs, all of these options should be considered. Make sure to look at what’s out there, and always try to find opportunities to save.

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