As you know, car insurance isn’t an option in South Carolina, it’s a requirement. It may seem like a heavy price to pay every month for something you may or may not use, but you’ll be glad you have it if you’re ever in a car accident. If you’re like most drivers, you don’t want to pay more for your policy if you can get it cheaper somewhere else. Do you know what affects your insurance rates? If not, you’ll want to learn what they are so you can figure out how to get the best “bang for your buck” as the saying goes.
The first way to lower your insurance costs is to shop around. You may not realize it, but insurance rates can vary by hundreds of dollars for the exact same coverage. If you’re a good driver, you can save as much as $100 a month or more by finding a cheaper insurer. If you have poor credit or if you recently caused an accident, you could save even more – up to $200 every month, according to a NerdWallet analysis.
Do You Know Which Discounts Are Available?
Each insurance company offers its own discounts for policyholders. Allstate, for example, offers discounts based on a person’s lifestyle and driving. Geico offers discounts based on driver education, a good driving record, and customer loyalty. It also offers a military discount and a discount for federal employees and retirees. State Farm has its own discounts too, such as a student discount and one for safe drivers who don’t log many miles.
Related: What if My Car is Totaled and I Owe Money on My Loan?
Aside from looking for the best discounts, follow this advice to save money on your auto insurance premiums:
- Take care of your credit. If you have good credit, it will result in cheaper premiums.
- Consider moving to the country. When you live in a rural area, your insurance is likely to be cheaper than if you live in the city.
- If you drive a clunker, drop the auto insurance that you really don’t need, such as collision and comprehensive, both of which pay for your vehicle when it is damaged.
- Swap that fancy luxury or sports car for one that is cheaper to insure.
- Drive safely. If you can keep a good driving record, it will drive down the costs of auto insurance.
To find more ways to save on your auto insurance, read this Forbes article by Rob Berger.