How to Save on Car Insurance In UK, And USA: 6 Tips to Cut Costs

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Hi, I’m TechMunda, Finder’s car insurance writer. I’m committed to helping our readers — you– save money on car insurance. For context, car insurance costs drivers an average of$100 a month and it’s mandatory in most states. But there are ways to cut down on that premiumwhile still protecting yourself and your ride.

My first tip, drop any coverage you don’t

My first tip, drop any coverage you don’tneed. The less coverage you have, the less you’ll pay. If you’re on a budget, skip anyoptional extras and stick to a liability-only policy, which is the minimum required in moststates. If you have an older car, you might want to drop collision and comprehensive coverage,especially if you already park in a garage. Adding these two types of coverage to yourpolicy can double your rates.

Raise your deductible, If you can affort it

Another tip is to raise your deductible. This is the amountof money you’ll pay out of pocket before your car insurance kicks in. So let’s say you havea $1,000 deductible. That means you’ll pay $1,000 upfront when you make a claim, andthen your car insurance will cover the rest. But choosing a higher deductible means youcan pay a lower premium. Just make sure you can pay the out of pocket costs before yousign off on the higher deductible.

Reduce your mileage or explore a pay-as-you-go-policy

You can also try reducing the mileage you drive. Maybeyou don’t have much of a commute to work, or you could use public transportation. Youcan score a low mileage discount if you drive less than 35 miles a day, or 13,000 milesa year. And if you hardly ever get behind the wheel, look into pay-as-you-go car insurance.With this type of policy, you pay only for the miles you drive. Genius, right? If you’reinterested, Metromile and Nationwide smart miles are two of the biggest names out there.

Check if you qualify for descounts

While you’re at it, see if you qualify for any other discounts. Car insurance companiesare pretty generous when it comes to giving discounts. You could save for being a safedriver, a good student, a homeowner, a loyal customer, a federal employee, or a memberof the military. You can also be rewarded if you buy your policy online or pay yourpremium in full, if you drive a hybrid or electric car, or if you insure multiple carson the same policy, or if you bundle your car insurance with your home or renter’s insurance.Plus, you can stack all these discounts too. Depending on your insurance company, thesediscounts can amount to 50% or more off your premiums.

Insure your car in the oldest or safest driver’s name

Here’s another tip, and this one’sone of my favorites:insure your car in the oldest or safest driver’s name. Then listany riskier drivers, like your 20-something kid as a secondary driver on the policy. Thisshould leave you with a lower premium, but tread carefully here. If you lie about whodrives the most on the policy, your insurance company could deny a claim.

Shop around

Finally, shop around! Car insurance companies want to compete for your business, so let them. Get quotesfrom a bunch of companies and then compare their coverage, their rates and discounts.If you’ve had a major life event like moving addresses, consider switching companies ratherthan renewing your old policy. You could save hundreds of dollars just for being a new customer.I hope these six tips help you cut down your car insurance bill, while still getting thecoverage you need. You can compare cheap car insurance policies and find the best one foryou at Finder.com. Thanks for watching!Transcribed by https://otter.ai

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