Everyone is excited to get behind the wheel for the first time. Remember how exciting it was to get your first car? Now contrast that with how excited you were when you learned about car insurance. Not thrilled, huh? Probably even less happy when you learned about the hefty monthly premiums you’d have to pay in order to drive a car legally. However, there’s a couple tricks you can use to minimize your car insurance payments to make it more affordable.

car insurance

1. Make sure to bundle your coverage

You probably have insurance for a couple different things. House insurance, life insurance, renters insurance are just some of the most common. Insurance companies love when you buy from them, so they’ll likely give you discounts if you purchase multiple packages from them. Thus, expect lower rates if you’re using the same provider across insurances.

2. Be smart about your coverage

While having less coverage will decrease your monthly premium, it’s never a smart idea to get less insurance than you think you may need. While it may save you money now, you’ll be in an even worse spot if an accident happens. However, review your coverage closely and make sure you truly need all its offerings. You may find that some of the coverage isn’t helpful for your situation and be able to drop it for cheaper rates.

3. Usage-based insurance could be for you

Your insurance company likes to know your habits so they can better assess your risk. Some insurance companies have usage-based insurance programs that place devices in your car to track your driving habits and destinations. Based off of their findings, you could save money if they deem you a low risk driver.


4. Higher deductibles may help

If you increase your deductible your insurance rate should go down. Your deductible is the amount you’d pay in an accident before receiving any money from your insurer. This could be a good option for someone who doesn’t drive much and has a very safe record. However, be aware that accidents happen and you don’t want to be in a situation where your deductible is higher than you’d be able to pay. Ensure your deductible is a price that fits within your financial situation.


5. Don’t forget to shop for car insurance

Don’t get too comfortable with your insurance provider. While some insurers reward long time members, other can take advantage of you and slowly move up the price. Make sure you’re constantly looking at the market to make sure you have a competitive rate. If not, it may be time to change. While it may be a hassle, your finances will thank you for it!