For many drivers, a few simple lifestyle or habit changes can drastically affect the rates we pay for car insurance, according to Certified Financial Planner Joel Ohman.
“Even if you have recently checked for the best available rates,” Ohman says, “the rates change all the time. You need to be vigilant about checking regularly —and there are several ways to save money that every insurance buyer should know.”
Here are Ohman’s seven possibilities for cutting car insurance costs:
• Drop coverage you no longer need – Just as adding a teen driver may up your rates, moving to a less busy zip code may reduce them. Check with your agent after any family or lifestyle change to see if any part of your coverage may be dropped.
• Search for discounts – New discounts pop up all the time. Check online with competing companies every six months or so to see if you qualify for any of them.
• Improve your credit score – Car insurance rates are affected by credit score. If you’ve been working to improve yours, check with your agent to see how better scores may affect your rates.
• Pay premiums with a credit card – Paying your premiums with a cash back credit card can help you shave between one and five percent off your car insurance rate, depending on how much cash back your credit card offers.
• Tell your kids to keep their grades up – Just about every insurance company offers some kind of good student discount. If your kids get good grades, you save money. You can even pay the kids some of the money you saved as an incentive to keep up those good grades.
• Take a driving course – Check with your carrier to see what courses they recommend that will result in reduced premiums—like a 55 Alive driving course for seniors, or a defensive driving course open to all.
