Daily Traffic Alerts

Car Insurance Tips: You Save More When You Drive Safely

Car Insurance

Every driver knows how much fun it is to have to pay insurance premiums on their vehicles. Whether you drive a ten-year-old car that you bought used or a brand-new sports car, you have to get insurance. However, that doesn’t mean you have to spend an arm and a leg for coverage. With the right tips, you can actually save a lot of money on your car insurance.

Let’s take a closer look at how you can save money on your monthly premiums.

Drive Safely

Let’s get the obvious one out of the way up front: you need to drive carefully, all the time. Not just when it’s dark or raining, not just when there are cops around. All the time! If you’re not driving safely, the odds of getting into an accident go up immensely. That’s not just a bad thing because of your insurance rates, either. Accidental deaths represent the third-most likely cause of death in the United States.

When you drive more carefully, not only will your insurance premiums be lower, but your life expectancy goes up. So, slow down out there and drive safely.

The Amount of Insurance You Need

If you’re driving an older vehicle, you might not need comprehensive coverage. After all, a twelve-year-old sedan isn’t quite the same value as a brand-new luxury car. Consider this when you’re shopping for coverage, and try to match the insurance you’re getting to the car you drive.

Paying higher monthly premiums to fully cover a car that’s worth about $3,000 is downright bad money management. If you tune your insurance more finely, you could instead invest the money you’re saving into an account to potentially buy a newer vehicle. Or, you could just invest the money into the stock market!

Raising Your Deductible

In insurance terms, your deductible is how much money you pay out of pocket before the insurance company starts covering things. For instance, let’s say you need $400 worth of repairs done to your car, but you’ve got insurance with a $200 deductible. First, you’ll pay $200, then the insurance company will pay the other $200.

However, if your deductible is $500, there’s no point in making a claim, as your insurance won’t cover any of the repair costs. Likewise, if you’re not usually making claims, to begin with, it might not make sense to pay a high monthly premium to have a low deductible. To save yourself some money, you could consider raising your deductible to make your bills a bit lower.

DJ Swanson

D.J. Swanson never planned to be a writer. His first job was working in his family’s autobody shop, but after studying English and journalism in college, he decided not to join the family business.

Instead, D.J. realized that he could make a difference by helping people learn how to maintain their cars and drive safely in challenging conditions. He is proud to share his lifelong knowledge of cars and driving here at Daily Traffic Alerts.

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