If you’re like most people, you only drive your car a few thousand miles each year. This can be great for the environment, but it can also lead to higher car insurance rates. That’s because car insurance companies often charge more for low-mileage drivers. But don’t worry – there are plenty of ways to save money on auto insurance, even if you drive relatively few miles each year like if you drive less than 25 miles a day. In this article, we will discuss seven tips that can help you save money on car insurance.
Tip #1: Shop around for the best rates
It’s always a good idea to shop around for car insurance rates. This is especially true if you drive relatively few miles each year. You may be surprised at how much money you can save by comparing rates from different car insurance companies. With car insurance, one company may charge you $900 per year while another charges just $600. That’s a difference of $300. So make sure to shop around for car insurance quotes before you renew your policy.
Tip #2: Raise your deductible
If you’re looking to save money on car insurance, one of the best things you can do is raise your deductible. This means that you will have to pay more out-of-pocket if you need to make a claim, but it will also lead to lower rates. That’s why it’s a good idea to raise your deductible if you drive relatively few miles each year.
Tip #3: Combine your policies
If you have more than one car, it may make sense to combine your car insurance policies. This can lead to lower rates, and it can also be a convenient way to manage your car insurance. On the other hand, if you only have one car, it may not make sense to combine your policies but by reducing the number of cars in your household you can potentially also save a lot on recurring costs – if it’s feasible for your lifestyle.
Tip #4: Choose the right car insurance company
Not all car insurance companies are created equal. Some companies charge more for low-mileage drivers than others. By keeping this in mind and comparing car insurance rates from different car insurance companies, you can find the best car insurance for your needs. You can check your local insurance brokers that you trust or you could also check the Internet for car insurance quotes that might include good offers from outside of your area but still provide a good service.
Tip #5: Check your credit score
Your credit score is one of the biggest factors that car insurance companies consider when calculating your car insurance rates. That’s why it’s important to check your credit score and make sure it’s as high as possible. Insurance companies check your credit score to see how likely you are to make a claim. If your credit score is low, you may be charged more for car insurance. This is why it’s good to get some clarity on how your score looks.
Tip #6: Drive a fuel-efficient car
If you want to save money on car insurance, one of the best things you can do is drive a fuel-efficient car. This will help you save money at the pump, and it will also help you save money on car insurance. It’s also good to check into options for electrical vehicles like the cars from Tesla. Some insurers might be able to give you better rates on modern and sustainable vehicles.
Tip #7: Drive safely and avoid accidents
The best way to save money on car insurance is to drive safely. If you have a bad driving record, that might have a negative impact on your rate calculation as well. This means obeying the speed limit, not engaging in distracted driving, and avoiding accidents at all costs. By being a safe driver, you can significantly lower your car insurance rates over time. Plus, it’s just the right thing to do.
Bonus Tip: Reduce your mileage
One of the best ways to save money for your car is to reduce your mileage. This can be done by carpooling with coworkers or taking public transportation when possible. It may not seem like much, but every little bit helps.
These are just a few tips that can help you save money on car insurance. By keeping these tips in mind, you should be able to find the car insurance that’s right for your needs. In conclusion, there are many ways to save money on car insurance, even if you drive relatively few miles each year. By following these seven tips, you can be sure to get the best rates possible on car insurance.
Photo credit: All images shown (1, 2) were done by Athul Krishna.
