5 Ways To Lower Your Car Insurance Bill, According To Dave Ramsey
Written by
Cara Danielle Brown
Edited by
Levi Leidy
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So you carefully monitored your spending the last couple months and finally started seeing that checking account inch upward. Perhaps you can spring for those Lady Gaga concert tickets or put some extra money in your high-interest savings account. …Then you open your mail and remember a hard, cold reality: Your expensive car insurance bill is due. No Mother Monster for you. Buzzkill, right?
Well, according to Dave Ramsey’s website Ramsey Solutions, there are a few ways to lower that dreaded car insurance bill. Here are five.
Ask For a Discount
Under the category of “not rocket science,” Ramsey Solutions explained that sometimes all you have to do is inquire. Car insurance companies offer several discounts you may qualify for. These can include AAA membership, public service jobs, serving in the military, having good grades, possessing a good driving record, being a senior citizen, taking driver’s ed and others. You may actually wind up with multiple discounts just for being you.
Buy an Insurance-Friendly Vehicle
There’s no better way to save on car insurance than to purchase a car that’s less expensive to repair if you get into an accident.
“Since new cars are more expensive to repair and replace, they’ll make your insurance premiums skyrocket,” said the Ramsey Solutions article. That’s why the website suggested purchasing a used car between four and 10 years old.
Smaller cars are also less expensive to insure. So, if you want to save money, swap out your pickup truck for a small SUV. And always remember that you can call your car insurance company to receive a quote on any vehicle you are interested in purchasing — if the cost to insure it is too high, keep shopping.
Shop Around
If you’re feeling like your premium is getting too expensive, shop around to compare prices. Another company may offer you a better rate and there’s nothing wrong with jumping ship. Alternatively, don’t be afraid to play hardball. Sometimes, to hang onto your business, your insurance company will price match if your research determined another company is offering a lower rate.
“They may even throw in a loyalty discount to thank you for sticking with them,” Ramsey Solutions wrote.
Bundle Policies
If you own more than one car, or a car and a house, or a car and a motorcycle (you get the idea), definitely bundle those policies to save money. Insurance companies offer incentives for keeping your business in-house — and it’s also less paperwork for you. Everyone’s happy.
Ramsey Solutions stated bundling car and home insurance with the same company can save you almost 25% less on your overall bill than if you insured these items separately. That’s a huge discount!
Change How You Pay Your Premiums
Insurance companies love ensuring all money is in hand as soon as possible — so much so they may reward you for it. Case in point: Paying monthly will typically cost you more money cumulatively than paying the whole premium upfront. Ramsey Solutions explained this is because it costs the insurance company money to process your payments each month. So pay the whole thing in one lump sum.
Just be sure to plan accordingly and set aside enough money to be able to make the payment. Ramsey Solutions cited one Facebook user who claimed he saves $120 every six months (and $240 per year) simply by paying his premium in full.
Some insurers may also offer discounts for going paperless or automating payments.
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